A high-frequency futures trader, Navinder Singh Sarao (from the UK), has been charged with illegally manipulating the stock market, contributing to the May 2010 "flash crash," according to charging documents.
The US Justice Department charged the trader with wire fraud, multiple counts of commodities fraud, multiple counts of commodities manipulation, and one count of spoofing, wherein a trader submits a bid or an offer with the intent to cancel the trade before it's executed.
Mr. Sarao was arrested in his native United Kingdom today and the U.S. Department of Justice (DOJ) is requesting extradition. The charges were outlined in a federal complaint in February but were unsealed today. The Commodity Futures Trading Commission (CFTC) filed parallel civil charges and have alleged the trader may have made profits up to $40 million. His assets have since been frozen awaiting the results of the proceedings.
The experienced securities fraud attorneys at Colling Gilbert Wright & Carter represent investors in the Commodities Futures Trading Commission (CFTC) and the National Futures Association (NFA). If you have lost money as a result of an investment in foreign currencies or other commodities, please contact us for a free case evaluation.