Courtesy of Pam Martens.
Flash Crash Chart of May 6, 2010
The U.S. Justice Department is relying on Americans’ gullibility with its arrest of a 36-year old in the U.K., charging him as a key culprit in the Flash Crash of the stock market on May 6, 2010. London newspapers report the young man trades from his bedroom in his parents’ middle class row house.
The arrest came on the same day that news broke that Loretta Lynch was speeding toward a confirmation vote in the U.S. Senate as the next U.S. Attorney General, meaning that current U.S. Attorney General Eric Holder is making his last hurrah after failing to prosecute any bigwigs on Wall Street throughout his tenure, notwithstanding their insidious role in the greatest financial collapse since the Great Depression.
The first problem with the Justice Department’s complaint against the bedroom spoofer is that the complaint has gone missing. What was released to the public consists of a one-pager stating that there is a complaint, followed by an affidavit from an FBI agent and a one-page Exhibit A which shows trading prices on an S&P 500 futures contract from 11:00 to 11:12 – far removed from when the Flash Crash occurred in the afternoon.
The press release issued by the Justice Department tells us that “Navinder Singh Sarao, 36, of Hounslow, United Kingdom, was arrested today in the United Kingdom, and the United States is requesting his extradition. Sarao was charged in a federal criminal complaint in the Northern District of Illinois on Feb. 11, 2015, with one count of wire fraud, 10 counts of commodities fraud, 10 counts of commodities manipulation, and one count of ‘spoofing,’ a practice of bidding or offering with the intent to cancel the bid or offer before execution.”
However, the actual complaint that would provide specifics of these counts is missing from what was released by the U.S. Justice Department.
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