‘Flash crash’ trader faces new claims by US authorities
A BRITISH financial trader accused of helping trigger a multi-billion-dollar US stock market crash is to face new allegations, a court was told.
Navinder Singh Sarao, 36, appeared at London’s Westminster magistrates’ court, where he refused consent to be extradited to the US.
Mark Summers, representing the US government, did not go into detail about the new claims but said they “are not talking about trading activity, it is some emails the defendant sent”.
Mr Summers told the court: “They bring back the start date of the allegation of the criminal activity by six months. They include new factual allegations.” He said an additional request or warrant had been needed “given they extend the indictment period”.
Mr Sarao was arrested in April at the request of the US authorities, who want him extradited to face allegations that he helped cause the so-called Flash Crash on Wall Street in 2010 from his parents’ home 3,500 miles away in Hounslow, west London.
The US justice department claims Mr Sarao and his company, Nav Sarao Futures Limited, made £26m illegally over five years. The former bank worker faces charges including wire fraud, commodities fraud and market manipulation, which carry sentences totalling a maximum of 380 years.
His extradition hearing, due to take place yesterday, had to be adjourned after Mr Sarao’s lawyer, James Lewis QC, had an accident and injured his ankle on the way to court.
Joel Smith, representing Mr Sarao, described his client’s mental health as “fragile”. He noted that his client has Asperger’s syndrome, so all this “adds to the stress and strain on him”.
Mr Sarao was released on conditional bail ahead of a preliminary hearing on October 22. A new extradition hearing was set for February 4-5.