Ex-Trader Found Guilty Of Rigging Libor Moves To Quash Industry Ban

Josh O'Neill Assistant Editor 23 February 2017

Ex-Trader Found Guilty Of Rigging Libor Moves To Quash Industry Ban

To date, Hayes has raised nearly $100,000 through crowdfunding to finance his appeal.

Tom Hayes, a former UBS and Citigroup trader jailed for 11 years for conspiring to rig Libor, has filed a claim against the UK’s financial regulator to reverse an order that banned him from working in the industry.

Hayes filed a claim against the Financial Conduct Authority in London’s Upper Tribunal Court on 23 December, according to court listings.

Hayes became the first person to be convicted of manipulating the London interbank offered rate, or Libor, a crucial interest rate benchmark tied to trillions of dollars of securities. In 2015, he was initially sentenced to 14 years’ imprisonment. This was reduced to 11 on appeal. More than 10 firms have shelled out around $9 billion in fines and more than 20 traders have been charged following global probes into the scandal.

Karen Todner, Hayes’ lawyer, reportedly said he is representing himself in proceedings, while she is acting for him as he appeals his conviction.

It is standard practice for the FCA, or any regulator for that matter, to ban an individual from working in financial services following a criminal conviction.

Kweku Adoboli, a former UBS trader who was handed a seven-year jail sentence in 2012 for causing a $2.3 billion loss to the Swiss bank, was banned in 2015, four months after he was released from prison.

Last year, Hayes was denied an appeal in the Supreme Court, the UK’s highest court. Following this, he referred his case to the Criminal Cases Review Commission, an independent body established to investigate suspected miscarriages of justice, last month. To date, he has raised nearly £78,000 ($97,000) through crowdfunding to finance his appeal.

Another trader who was snagged in Libor rigging at Barclays, Jay Merchant, earlier this week had his prison sentence reduced by 12 months to five and a half years. He was found guilty last July after a three-month trial in which he was accused of conspiring with other employees to rig Libor between 2005 and 2007.

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