U.S. Recommends No Jail Time for Flash Crash Trader
- DOJ cited ‘extraordinary cooperation’ and autism diagnosis
- British trader to be sentenced in Chicago on January 28
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Navinder Singh Sarao, the British trader blamed for helping cause the 2010 Flash Crash from his bedroom, should serve no additional jail time, U.S. authorities said in a recommendation before his Jan. 28 sentencing in Chicago.
The government cited Sarao’s “extraordinary cooperation,” his autism diagnosis and the fact that he lost most of the 45 million pounds ($58.5 million) he made trading to fraudsters, according to a memo filed with the court Tuesday. He spent four months in a London jail, and the Justice Department said an additional term term wouldn’t deter other traders, and would pose serious risks to the 41-year-old’s mental health.