By Sara Zubeldia, Marketing —
Wall Street deals with crazy schemes, and the “flash crash” is one that is slowly being solved. Navinder Singh Sarao plead guilty to taking part in the Wall Street’s “flash crash” of 2010, and is the second person convicted of spoofing the U.S. future markets. Not only did Sarao plead guilty to spoofing, but he also plead guilty to wire fraud, and he has agreed to pay the U.S. the $12.9 million he illegal acquired.
The Flash Crash
Sarao suffers from Asperger’s syndrome, and his family remarked that “Sarao has ‘some extraordinary abilities,’ such as recognizing patterns, adding he also has ‘severe social limitations.’” Sarao was able to spoof the E-mini S&P 500 futures by using a modified computer program that would push down prices, allowing him to buy contracts at lower prices. His astuteness in his scheme is incredible, and this Londoner caused much panic for many in the U.S.. Assistant U.S. Attorney General Leslie Caldwell said he “jeopardized the integrity of U.S. financial markets. . . .his scheme victimized countless individuals.”
Sarao has been sentenced to jail time for 78-97 months, with a maximum term of 30 years. However, there is always the possibility that Sarao will repeat his spoofing and wire fraud actions. Many with his abilities could easily pull off another spoof. To prevent this, EyeDetect would prove essential in screening criminals as they near the end of their sentences. If criminals were made to take deception detection tests, the government could ask them if they had plans to commit more crimes in the future. They would essentially be able to look into their minds, analyzing their secret desires through pupil dilation. If EyeDetect were implemented into these government agencies, the U.S. would see a decrease of recurring white-collar crime.