London | An Indian-origin futures trader, fighting extradition to America for his alleged role in the 2010 Wall Street flash crash which wiped nearly USD 1 trillion off the value of US shares, will file an appeal against his bail conditions in the UK High Court.
Navinder Sarao, 36, will appeal against the 5-million pound bail security imposed on him that he has been unable to pay and forcing him to remain in prison in the UK High Court. Sarao, who has been in custody since his arrest on April 22, was denied a request to alter his bail conditions earlier this week.
His lawyers argued that because his assets are subject to a worldwide freezing order imposed by the US authorities who are trying to extradite him, it would be unlawful for him to meet the requirement. His solicitor, Richard Egan of Tuckers, said the appeal papers will be filed this week, with a hearing date to be determined. Sarao has expressed his frustration at being detained at Wandsworth Prison, saying he has not done anything wrong, apart from being good at my job.
How is this allowed to go on ?. The court has granted him bail on the condition that he pays a 5-million pound security, alongside a 50,000-pound security from his parents. Other conditions include staying at his parents’ home in Hounslow, south-west London every night, staying off the internet and reporting to a police station three times a week.
Sarao is extradition to the US to face charges that have a total maximum sentence of 380 years. It is alleged that he used a high speed internet connection at his parent’s home to place a large number of fraudulent electronic orders to sell one type of financial contract. He is then accused of cancelling the orders, forcing the prices back up again and taking profit from the price swing.
The US Department of Justice believes that these trades contributed to the flash crash of May 6, 2010, when the Dow Jones stock exchange lost 700 points in a matter of minutes, wiping USD 800 billion of the value of US shares, before recovering again.
US regulators have blamed high-frequency traders placing multiple sell orders for the crash. High-speed trading is where share dealers use computer algorithms to buy and sell stocks in milliseconds.
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