'Flash crash' trader remains in jail after second court appearance

The trader accused of playing a role in the "flash crash" of 2010 has appeared for a second time before a London court after he failed to raise £5.05m bail.

Navinder Singh Sarao, 36, who is fighting an attempt by the US authorities to extradite him to trial in Chicago, appeared at Westminster magistrates on Wednesday exactly a week after he was first granted bail.

Mr Sarao appeared in the dock dressed in a grey tracksuit, and spoke only to confirm his name, date of birth and address. His lawyer, Joel Smith, told the court that the conditions for his client's bail had not been met and invited the court to make no further order.

District Judge Jeremy Coleman told Mr Sarao in the 10-minute hearing that he would be rebailed on exactly the same terms. "If you meet the conditions, you will be released. If you do not, you will be back here on May 6," he said.

A full extradition hearing of Mr Sarao's case is due to be held on September 24 and 25.

Mr Sarao was granted conditional bail last week by District Judge Quintin Purdy provided he raised £5m plus a further £50,000 from his father and two brothers. He has failed to raise this sum and has remained ever since in custody, believed to be in Wandsworth prison.

Mr Sarao, who traded from his parents' modest home close to Heathrow airport, has been charged by the US Justice Department with wire fraud, commodities fraud and market manipulation over a period of several years.

He is facing 22 charges which carry sentences totalling a maximum of 380 years, and the US Justice Department alleges he made £26m illegally over five years.

Mr Sarao, a former Brunel University graduate and bank worker, first appeared in court last week saying he would fight extradition. His lawyer told the court that his arrest had come as a "bolt from the blue".

Lawyers acting for the US authorities opposed bail, on the grounds that he might fail to surrender to the court. But after representations from Mr Sarao's lawyer, District Judge Purdy granted bail with a series of conditions attached.

The court was told last week that Mr Sarao was a UK citizen, born here and living with his family here. He has no previous criminal convictions, only speeding tickets.

"He has been raised, educated and lived in this country.. He has community ties in this country and nowhere else," Mr Smith told the hearing. He added that the only argument put forward by prosecutors for him to be refused bail was based on the seriousness of the offence and the fear that he may fail to surrender.

Mr Sarao's father, who is retired, was prepared to put up £30,000 in surety and his two brothers would each stump up £10,000, the court heard. One brother works as an optician and the other in IT technology, the hearing heard.

Judge Purdy told Mr Smith the prosecution had complained Mr Sarao had made "very significant sums" and noted that the £26m that Mr Sarao was alleged by the DoJ to have made was not mentioned by his lawyers.

Last week Judge Purdy was told Mr Sarao had "substantial monies available to him."

Mr Smith had told the court his client had betting accounts containing £100,000 and a trading account containing £5m, of which £4.7m was a loan to trade with that was "not his money."

Bail conditions include the stipulations that Mr Sarao live and sleep at an address in Hounslow provided to the court, where he must be under electronic curfew between 11pm and 4am. It is unclear whether this was his home address.

His passport must be retained by the police and he was told he could not apply for travel documents and must report to Hounslow police station three times a week.

As a further condition, his parents' UK passports must also be provided to his solicitors. He must have a mobile phone with no internet access and is not permitted to access the internet for any purpose.

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