Reuters: British Judge Approves Extradiciton of ‘Flash Crash’ Trader to U.S.

The following is an excellent article written by Michael Holden on March 23, 2016, on the Reuters website titled “British Judge Approves Extradition of ‘Flash Crash’ Trader to U.S.” and I quote:

Business | Wed Mar 23, 2016 9:55am EDT

“British judge approves extradition of ‘flash crash’ trader to U.S.”

Navinder Sarao arrives at Westminster Magistrates’ Court for an extradition hearing in London, Britain March 23, 2016.
Reuters/Toby Melville

A British judge approved on Wednesday a U.S. request for the extradition of a London-based trader accused of contributing to the 2010 Wall Street “flash crash” by placing bogus orders to spoof the market.

Navinder Sarao, 37, who traded on the Chicago Mercantile Exchange (CME) from his parents’ home near London’s Heathrow Airport, is wanted in the United States to face trial on 22 criminal counts of wire fraud, commodities fraud and market manipulation. He denies any wrongdoing.

“We are very disappointed,” Sarao’s lawyer Richard Egan told reporters after the ruling at Westminster Magistrates’ Court. “We think we have still got a strong argument and we will be appealing this decision.”

The decision of judge Quentin Purdy was not related to Sarao’s guilt or innocence but on technical matters such as whether the offences of which he is accused are a crime in Britain.

The judgment has to be approved by Home Secretary (interior minister) Theresa May before the extradition can go ahead.

U.S. authorities say Sarao used a modified computer program to “spoof” markets by generating large sell orders that pushed down prices. He then canceled those trades and bought the contracts at the lower prices, reaping a roughly $40 million profit.

His actions contributed to market instability which led to the May 6, 2010 flash crash when the Dow Jones Industrial Average briefly plunged more than 1,000 points, temporarily wiping out nearly $1 trillion in market value, they say.

While Purdy rejected Sarao’s arguments against extradition, he also cast doubt on the role the trader is alleged to have played in the crash.

“The causes of the flash crash are not a single action and cannot on any view be laid wholly or mostly at Navinder Sarao’s door, although he was active on the day,” the judge said in his written ruling.

However Purdy added the flash crash was just one of the 400 trading days referred to by U.S. prosecutors.

“That’s what this case was about in the first place,” Egan said of Purdy’s comments on the flash crash. “Even on this judgment which is against us at this point … the judge has confirmed that isn’t right on any level.”

Sarao remains on bail pending his appeal. The maximum U.S. sentences for the charges he faces amount to more than 350 years in prison.

(Writing by Michael Holden and Estelle Shirbon; Editing by Stephen Addison)”

(SHOULD THIS KIND OF CORRUPTION BE ALLOWED TO TAKE PLACE IN OUR STOCK MARKET WITHOUT THOROUGHLY BEING INVESTIGATED?  SEEMS TO ME LIKE PEOPLE SHOULD BE PUT IN JAIL. THERE IS ALSO ANOTHER ARTICLE ON THIS SAME SUBJECT FROM THE  CRANE’S CHICAGO BUSINESS WEBSITE DATED JANUARY 27, 2016 TITLED “IS SARAO SOLELY TO BLAME FOR CME’s FLASH CRASH?”

LaVern Isely, Progressive, Overtaxed, Independent Middle Class Taxpayer and Public Citizen Member and USAF Veteran

 

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About tim074

I'm a retired dairy farmer that was a member of the National Farmer's Organization (NFO). Before going farming, I spent 4 years in the United States Air Force where I saved up enough money to get my down payment to go farming. I also enjoy writing and reading biographies and I write about myself as well as articles and excerpts I find interesting. I'm specifically interested in finances, particularly in the banking industry because if it wasn't for help from my local Community Bank, I never could have started farming which I was successful at. So, I'm real interested in the Small Business Administration and I know they are the ones creating jobs. I have been a member of Common Cause and am now a member of Public Citizen as well as AARP. I have, in the past, written over 150 articles on the Obama Blog (my.barackobama.com) and I'd like to tie these two sites together. I'm also on Twitter, MySpace and Facebook and find these outlets terrifically interesting particularly what many of these people did concerning the uprising in the Arab world. I believe this is a smaller world than we think it is and my goal is to try to bring people together to live in peace because management needs labor like labor needs management. Up to now, that hasn't been so easy to find.
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