business and finance

Suburban futures trader to fight extradition over US claim he caused market collapse for financial gain

"Flash Crash" by PaulTheOctopus - Own work. Licensed under CC BY-SA 3.0 via Wikimedia Commons

“Flash Crash” by PaulTheOctopus – Own work. Licensed under CC BY-SA 3.0 via Wikimedia Commons

A Hounslow financial trader accused of helping to trigger a multi-billion dollar US stock market crash says he will fight plans to extradite him to America.

36 year old Navinder Singh Sarao is accused of masterminding the 2010 Wall Street ‘flash crash’ from a room in his parents’ semi-detached house on the other side of the Atlantic.

His base of operations is in a suburban locale a million miles from New York City’s Wall Street.

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He faces 22 charges including wire fraud, commodities fraud and market manipulation.

They carry sentences totaling a maximum of 380 years.

The US Justice Department allege Sarao and his company, Nav Sarao Futures Limited, illegally made £26 million over five years.

In court papers lodged in America, it’s alleged Sarao claimed he told US regulators to ‘kiss my ass’ in May 2010 after they wrote to him telling him his orders must be for ‘bona fide transactions.’

Against prosecutors’ wishes, he was granted bail by Westminster Magistrates’ Court.

The condition is that he provides a security of £5 million.

Asked whether he consented to his extradition to the US, he replied: ‘No.’

He will not be released back to his parents’ home until the court can be satisfied with the security.

District Judge Quentin Purdy questioned the US government claims that he had amassed £26 million.

He observed: ‘That amount could well buy a home somewhere more lush than Hounslow. So where is it?’

The British media has been asking the question: ‘Wolf of Wall Street? More like Hound of Hounslow.’

Sarao is a former bank worker and Brunel University student.

He appeared in the dock wearing a bright yellow sweatshirt and white tracksuit trousers.

The Daily Telegraph has been the first British news outlet to publish his photograph under the headline ‘Flash Crash trader Navinder Singh Sarao ‘a prankster who always got away with it’, friends say’

Daily Telegraph scoop with first image of Sarao. Image: Telegraph. Click through to access report.

Daily Telegraph scoop with first image of Sarao.
Image: Telegraph. Click through to access report.

 

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