CHICAGO A London-based trader pleaded guilty to wire fraud and spoofing on Wednesday after being extradited to the United States to face federal charges related to his role in the 2010 Wall Street "flash crash." Navinder Sarao, 37, who traded on the Chicago Mercantile Exchange (CME) from his parents' home near London's Heathrow Airport, appeared in federal court in Chicago after losing a legal challenge to his extradition.Sarao agreed to pay the U.S. government $12.8 million, the amount prosecutors said he earned from illegal trading. He will be released on a $750,000 bond and will be allowed to return to the U.K. pending sentencing in the United States, U.S. judge Virginia Kendall said.
Sarao used an automated trading program to spoof markets by generating large sell orders that pushed down prices, and then cancelled the trades and bought contracts at lower prices.
(Reporting by Tom Polansek; Writing by Jo Winterbottom; Editing by Leslie Adler)
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Published Date: Nov 10, 2016 04:30 AM | Updated Date: Nov 10, 2016 04:30 AM