January 29, 2020 / 12:25 AM / 24 days ago

'Flash crash' trader sentenced to time served plus a year of home confinement: lawyers

FILE PHOTO: Navinder Sarao arrives at Westminster Magistrates' Court for an extradition hearing in London, Britain March 23, 2016. REUTERS/Toby Melville/File Photo

(Reuters) - A Chicago-based U.S. federal district court judge on Tuesday sentenced Navinder Sarao, a London-based trader accused of contributing to Wall Street’s 2010 “flash crash”, to time already served in jail of four months, with a year of home confinement, Sarao’s attorneys said in a statement.

Sarao's attorneys at Dechert LLP said here their client initially faced the possibility of more than 100 years of jail time for his role in the May 6, 2010, crash when the Dow Jones industrial average .DJI briefly plunged over a 1,000 points, temporarily wiping out nearly $1 trillion in market value.

Sarao pleaded guilty in 2016 here to wire fraud and “spoofing” for placing orders intended to affect prices — rather than trade — in the S&P 500 E-mini futures market.

U.S. District Court Judge Virginia Kendall on Tuesday sentenced Sarao to time served, his lawyers said. Sarao spent four months in a London prison in 2015 prior to being released on bail.

“(Sarao) is overjoyed to put this behind him, go home, and move on with his life,” said Dechert partner Roger Burlingame.

Reporting by Nishara Karuvalli Pathikkal in Bengaluru

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