US authorities suspected that a British man accused this week of causing the 2010 'flash crash ' was making illicit trades back in 2009 it 's been revealed , with experts expressing shock that it took six years for charges to be brought . Navinder Singh Sarao , 36 , is accused of making £26million from illegal trades over five years and an investigation team involving six agencies in the US and Britain want him put on trial in New York . But analysts are bewildered that it 's taken this long for action to be taken . US authorities suspected that British man Navinder Singh Sarao ( circled ) accused this week of causing the 2010 'flash crash ' was making illicit trades back in 2009 . US prosecutors believe Mr Sarao used special computer software to manipulate the market on Wall Street . 'Flash crash ' : Sarao is accused of causing the Wall Street 'Flash Crash ' on May 6 , 2010 , when £570billion ( $ 850 billion ) was wiped from the value of America 's biggest companies in five minutes . Sarao was warned about his trading in 2009 by officials at the self-regulatory Chicago Mercantile Exchange ( CME ) , where he was making transactions . However , he continued his alleged manipulation well into this year . Dave Lauer , president of lobbying and research firm Kor Group , told Bloomberg that he was gobsmacked at the pace of the investigation . He said : 'How this continued for six years when the CME appeared to know about it , it kind of boggles my mind . This is about as simple and easy as you can get , and it took them this long to do anything about it . ' Edgar Perez , author of Knightmare on Wall Street and The Speed Traders , meanwhile , asked : 'Why would regulators let Sarao operate in the markets and engage in similar trading strategies as in the Flash Crash eight more times ? ' Sarao allegedly triggered – from his home computer in Hounslow , London – the Wall Street 'Flash Crash ' of May 2010 , in which almost a trillion dollars was wiped from global share prices , using a series of fake transactions . Trader Navinder Singh Sarao , 36 , is shown here at Westminster Magistrates ' Court after being arrested over illicit trading . A flash crash is a sudden plunge in stock prices . On May 6 , 2010 , the US stock market dramatically collapsed – wiping billions off the world 's biggest companies . Between 2.42pm and 2.47pm , the Dow Jones shed 600 points , having already been down more than 300 points – a startling 6 per cent fall in just five minutes . Very soon it had recorded an almost 1,000-point loss on the day . But , by 3.07pm , the market had miraculously regained most of the 600-point drop – making the flash crash the second-largest point swing ever recorded . Hours later , European markets opened and crashed in similar fashion . The UK 's FTSE 100 fell 138 points , France 's Cac shed 163 points , and Germany 's Dax dropped 193 points . The cause of the crash puzzled US officials . Theories included technical glitches , high frequency trading or changes in market structure – but never criminal activity . He allegedly used automated trading software to 'spoof ' the market by placing up to 19,000 orders and then cancelling them , all in under one second . However , manipulation was n't identified as the cause of the crash in a September 2010 report , suggesting that regulators did not see his activity at that time . Tim Massad , the head of the Commodity Futures Trading Commission , which oversees the trading of futures and swaps , said on Wednesday that it took so long to charge Sarao because of the size and complexity of U.S. derivatives markets . 'These are huge markets , ' he said . 'There 's a lot going on . ' The agency , which oversees self-regulatory bodies such as the CME , brought civil charges against Sarao alongside criminal charges by the Department of Justice . The many years it took for the CFTC to come out with its findings , and the fact that manipulation was n't mentioned in the 2010 report , suggested that the help of a whistleblower was essential in bringing the charges , one lawyer said . 'This ca n't have been a five-year continuous investigation , ca n't have been , ' said the lawyer , who is familiar with the CFTC 's thinking , and who asked to remain anonymous . 'Something happened some period later where this came up again . 'If there was any indication that there was manipulation behind this , given the profile of this , the agency would have proceeded . It would n't have taken five years . ' Scotland Yard 's extradition unit arrested Sarao on Tuesday night at the request of the FBI , which claims he set up an offshore company in the Caribbean called 'Nav Sarao Milking Markets ' and arrogantly told financial officials to 'kiss my a*** ' . In West London , neighbours of the man now dubbed the 'Hound of Hounslow ' were puzzled by his supposed wealth , saying he lived humbly .
Navinder Singh Sarao , 36 , is accused of causing the May 2010 'flash crash ' Officials believe that he used software to make fake transactions . He was first warned about alleged illicit trading back in 2009 . Sarao continued his alleged manipulation well into this year . ' he investigation has revealed a pattern of suspicious activity by Mr Sarao, who allegedly made fraudulent purchases and sold them on eBay at prices far below their true value.