and there's a lot of talk also kelly, about the new culprit that isn't waddell and reed anymore. i think bethany in the last segment had it right. it took them five years to find a scapegoat. everything i read so far and all the reports and dimes to me, it sounds like the methodology many flash traders and high frequency traders use. sometimes it's just a very fragmented market and a statistical lineup where everything works out to find a vacuum and i think that's more of the truth than what we're reading right now. >> i'm with you on that. something just doesn't feel right. we'll talk about that in just a moment here. hang on to that thought for just a moment first, jeff cox, clearly volatility has picked up in this market the last several months here yet the vix is getting crushed. you wrote about that today. what's going on here? >> it depends on how you define volatility. if you look at the s&p 500 chart, you see squiggley lines, 200 points there, 100 points here, how does it all come out in the wash? we're fairly flat just up a couple percent on the s&p 500. what it's meant

. >> waddell harper and his cellmate, sakha ren, have created ways to break the monotony with the few sparse items they are allowed in their cramped cell. >> the dice are made from toilet paper. >> roll them up. draw on them. that's basically it, you know what i mean? your mind gets all creative once you're in here. you ain't got nothing else to do. >> and we make dominos out of soap. just different things to occupy your mind. >> shortly after meeting harper and ren, we discover another pair of utah cellmates with their own unique method of passing time. >> my name's tod luck, just one "d," t-o-d, luck if i had any, l-u-c-k. i am currently here for 1 to 15 robbery. >> steve hightower. i'm here on a parole violation for a dirty ua, dirty urinalysis for using drugs. it's lucky because both of us want to exercise. sometimes you get with a celly that doesn't want to exercise. and it's nice to have somebody that does because then you can use their body weight. >> you want to not look over your back as much and if you're a stick figure and walking in here with some new beef, you know, and y

in the south-580 as a have to live a more you run to more heavy rain this morning dislike the matt waddell creek copper you're also under the gun with moderate to heavy rain in that section of 680 from high with four down toward 24. >>james: you have moderate line right now especially of the piedmont oakland hills and look up toward paulo it turns on and read of the indicated heavy rain is coming down pretty intensely petaluma does pretty much the rain line right now area south of that santa rosa you get it at the moment novato center for addressing heavy rain at the moment the stretches off to the direction and the mayor came in richmond san rafael bridge under the gun would moderate to heavy rainfall that wind is blowing across that bridge so be careful to have on the well you want to be very careful with that. >>reporter: you will need to keep the umbrella handy because much of the morning we will continue to see scattered showers move through the area here is what looks like outside from the embarcadero some rain on the road it will make your commute a little dicey at times led chausso

after the flash crash of may 2010, all fingers pointed to kansas city and mutual fund manager waddelld. now u.k. authorities look to one solitary trader. now, ryan, help me with this, this gentleman was unknown right? ryan: that is right. it is quite an extraordinary story. his name is navender saroa. he is 30 years old, he lived right under the flight path to heathrow airport his whole life and it is from right here that u.s. prosecutors say this day trader effectively almost single-handedly was a significant factor in that flash crash, the collapse of the market on may 6, 2010. tom: what will be the drama today in court? does this guy come to the united states the? ryan: you know, that is what the united states wants. today is day one. he was arrested yesterday, he gets to the court, probably have to talk to his lawyers. the judge is likely to talk to the court that his lawyers are going to need time to prepare a defense. it has been a long time. clearly the prosecutors have had time to prepare their charges considering this happened in 2010 but there is a real human drama here. he

i don't doubt the waddell reed -- using the system that is sold to millions of market participate errantsthms that triangulate. >> this is not beyond doubt. the cma report is more than this. they're putting their reputation on the line. i don't think it's just because of subscriptions. everyone is acknowledging, you're acknowledging it pisani is acknowledging it you're acknowledging it that this guy alone didn't cause it. it sounds like the stuff he was doing, the volume is not big enough. the u.s. justice department which has lost virtually every one of these cases, including insider trading cases, okay they're accusing him, they're criminally charging him with wire fraud, commodities fraud and manipulation. they have a lot to prove there. i think this is a massive overreaction. >> they're using the wrong law. the martin act wassence stuted in the state of new york in 1921 preceding the creation of the s.e.c. it is held up under appellate division multiple times. under the martin act this is a criminal act. you only have to show intent to be a bad actor. >> isn't it true at that time whe