UK trader arrested for May 2010 U.S. Stock market flash crash

Discussion in 'Wall St. News' started by just21, Apr 21, 2015.

  1. Pekelo

    Pekelo

    Dude seriously, get a hold of yourself. Being a miser AND a trader are not mutually exclusive.

    If trading was a sport for him, he was just found doping...

    His best defense so far, hey everybody was doing it. Yeah, that really works in front of a judge:

    "elicited this May 2013 e-mail to a broker: "Lol, guarantee if I switch on my computer I’ll see the same people breaking all those rules, day in, day out.”"

    By the way they haven't talked about how much taxes he had paid or was supposed to pay. I am sure at one point that will also be an issue...
     
    Last edited: Sep 6, 2015
    #531     Sep 6, 2015
  2. More importantly, he was told directly by the CME to stop it....and he didn't.
     
    #532     Sep 8, 2015
  3. dealmaker

    dealmaker

    #533     Sep 10, 2015
  4. Request: can we stick to primary sources rather than editorial written for a gullible, easily inflamed, and uninformed audience? Plenty to see in the court papers.
     
    #534     Sep 10, 2015
  5. Pekelo

    Pekelo

    So let's address the tax avoidance issue, shall we?

    Sounds good to me, see Paragraphs 40 and 41.

    http://www.justice.gov/sites/defaul...ments/2015/04/21/sarao_criminal_complaint.pdf

    Nav Sarao Milking Markets Limited, how cute....

    I am not sure what a British future trader pays in taxes but I would say it is probably 20% or so. ( if I recall spread betting is taxfree, but he was futures trading) Thus Sarao making 5-6 mill annually, he should have paid at least a million in taxes. Yet, it hasn't been mentioned. What was mentioned that he set up offshore accounts to avoid paying said taxes.

    Now this is a British issue, not an American one, but I would be surprised if the Brits wouldn't look into it deeper. And yes, minimizing your taxes is legal, but completely evading paying it is NOT. Just ask our tax expert, Wesley Snipes...

    Oh yeah, and before you cry again about we quoting newspapers quoting the Complaint, the "kiss my ass" phone call reference is in paragraph 26.... :)

    Additionally, he is clearly lying about executing trades manually, when was asked by FCMs.... (Par. 28 for you) 1600 trades in 5 minutes, the guy should play Nintendo with such reflexes...
     
    Last edited: Sep 11, 2015
    #535     Sep 11, 2015
  6. Pekelo

    Pekelo

    OK, I have read the criminal complaint, but let's go back to the Telegraph, because they are obviously just making this up: :)

    http://www.telegraph.co.uk/finance/...ering-global-markets-flash-crash-in-2010.html

    "Accounts for Nav Sarao Futures for the year to October 2013 - the most recently available at Companies House - show cash on the balance sheet of £7.5m.

    In that year, the firm generated trading revenues of £9.07m, but the company produced a pre-tax loss of £5.7m, in part due to more than £14m of administrative expenses and costs including a £2m outflow on an unnamed capital expenditure item."

    I say he is going to get screwed by the British authorities too, and rightfully so. That is some administrative charge. Maybe the printer cartridge is really expensive in the Bahamas...

    Furthermore:

    "In the previous year, the company, of which Mr Sarao is the sole director, generated trading revenues of £10.5m, but posted a pre-tax loss of £28.1m due to £38.6m of expenses and costs, for which little detail is given."
     
    #536     Sep 11, 2015
  7. No doubt Nav is screwed with respect to the past due taxes. Most of those expenses were contrived. I wonder if he got receipts for his lap dances at the clubs ?
     
    #537     Sep 15, 2015
  8. #538     Sep 22, 2015
  9. Pekelo

    Pekelo

    What if the Uk says, we want to prosecute him first for tax evasion? Wouldn't that delay the extradiction? (if spending a few years in a UK prison can be counted as delay)
     
    #539     Sep 22, 2015
  10. Pek - that is a very good point. If they made that move, would he be required to post even more bail to stay out of jail until that hearing ?
     
    #540     Sep 22, 2015