A British merchant who was accused of contributing to a multi-million dollar collapse in the US stock market by playing in the markets from his parents’ suburban home in London should no longer serve time in prison, a prosecutor recommended.
Navinder Singh Sarao was labeled the “Hounslow Hound” after being arrested in 2015 for allegedly earning $ 40m (£ 27m) for his alleged role in the so-called “sudden accident” of 2010.
His arrest caused a sensation at the time due to the great discrepancy between his high-risk financial trade and his discreet lifestyle. Sarao was said to travel late to work to be able to buy tickets out of high season and only eat snacks at reduced prices.
Sarao spent four months in Wandsworth Prison after his arrest and was extradited in 2016 to the United States, where he admitted that he had been able to earn at least $ 12.8 million in illegal profits as a result of his plan.
The merchant, from whom a UK court heard that he has “severe Asperger’s syndrome,” has been working with the United States government to build cases against other suspicious market cheats, a contribution that means prosecutors They no longer seek to impose more prison time.
In a recommendation issued Wednesday, Michael O’Neill, deputy director of the fraud section of the US Department of Justice. UU., He said: “The sharp perceptions and explanations of the defendant regarding general and specific patterns of deceptive and manipulative commerce have illuminated the government’s understanding of similar forgery. As a result, it has substantially helped and informed national government efforts to detect, investigate and prosecute these crimes.
“Although the defendant’s cooperation with the government is complete, the government has no doubt that it will be readily available to assist in the government’s investigation and prosecution efforts in the future if requested.”
O’Neill concluded: “For the above reasons, the government respectfully recommends that this court move significantly below the range of advisory sentencing guidelines. Specifically, the government agrees with the probation officer and the defendant that a sentence of time served would be appropriate. “
The Department of Justice alleged that Sarao “cheated” the financial markets by using commercial software to place $ 200 million in fake transactions. It was alleged that his actions contributed to the sudden crash of May 2010, when the Dow Jones industrial average fell 600 points in five minutes and wreaked havoc on Wall Street.
Phishing involves placing, and then quickly canceling, orders in a financial market in an attempt to deceive other merchants about the supply and demand of the market, which could move prices in favor of the merchant.