[Photo:  Navinder Sarao, Courtesy of Twitter]

The CFTC announced that it is prepared to resolve its civil enforcement action against Navinder Singh Sarao (Sarao), who is charged - along with his company, Nav Sarao Futures Limited - with unlawfully manipulating, attempting to manipulate, spoofing, and use of a manipulative device - all with regard to the E-mini S&P 500 near month futures contract (E-mini S&P).

In the proposed CFTC Consent Order, Sarao admits that he:

• successfully manipulated the E-mini S&P on at least 12 days between 4/27/10 and 3/10/14 - including 5/6/10, commonly known as Flash Crash Day);
• attempted to manipulate the E-mini S&P tens of thousands of times between April 2010 and April 2015;
• placed tens of thousands of bids and offers that he intended to cancel before execution - i.e., spoof orders - between 7/16/11 and 4/17/15; and
• employed or attempted to employ a manipulative device, scheme, or artifice to defraud in connection with his spoof orders between 8/15/11 and 4/17/15.

The CFTC seeks to the imposition of more than $38 million in fines and other monetary sanctions, and to have Sarao permanently banned from the industry.

Sarao pleaded guilty in a related criminal action.