WASHINGTON (Sputnik) — Sarao, 37, used automated-trading software to manipulate markets, according to the release.
“Navinder Sarao abused sophisticated technology to make a quick profit, and jeopardized the integrity of US financial markets,” the release on Wednesday asserted. “By flooding the marketplace with bogus orders, his scheme victimized countless individuals.”
He admitted placing thousands of orders he didn’t intend to trade to create the appearance of supply and demand to entice other market participants to trade stock futures at prices and in quantities they normally wouldn’t have, the release added.
On Monday, Sarao was extradited to the United States and made an initial court appearance Wednesday, pleading guilty to one count each of wire fraud and “spoofing” before US District Judge Virginia Kendall in Chicago, the release noted.
He faces a maximum penalty of 20 years in prison for the wire fraud conviction and as many as 10 years for spoofing. In addition, the Commodity Futures Trading Commission asked a judge court to approve a civil settlement whereby HYPERLINK "" Saraowould pay $38 million in fines and agree to a permanent ban from equities trading.
