‘Hound of Hounslow’ trader who sparked trillion-dollar stock market crash from his bedroom should be spared jail, say prosecutors
Navinder Sarao was extradited to the US on charges of market manipulation after he carried out ‘spoofing’ trades
The British trader branded the ‘Hound of Hounslow’ for sparking a trillion-dollar stock market crash from his bedroom should be spared jail, American prosecutors have said.
Navinder Sarao was extradited to the US on charges of market manipulation after he carried out ‘spoofing’ trades from his parents’ house in west London. At one point it was feared the 41-year-old could face a 380-year jail term.
But as a judge in Chicago prepares to sentence him, prosecutors have urged leniency because of Sarao’s ‘extraordinary co-operation’ with the authorities which has provided ‘keen insights’ on how to catch illegal traders.
The Brunel University graduate, who is autistic, devised computer programs able to trade shares millions of times per day, driving their price up or down.
At the last second Sarao would then cancel the ‘spoof’ trades and take advantage of the price change with genuine trades.
After his arrest in 2015 he was blamed for a dramatic ‘Flash Crash’ on the American stock market in 2010.
However, prosecutors said he should not go to jail because his mental health could suffer, while most of the £45million he made from his trades was lost to fraudsters.
They said he continued to live with his parents, where he sleeps ‘in a child-like bedroom that includes multiple stuffed animals’, and used coupons to buy food at McDonald’s.
He is due to be sentenced on January 28.