Former UBS Trader Convicted in UK on Libor Manipulation Charges

Today, a UK jury convicted former UBS AG and Citigroup, Inc. trader Tom Hayes of committing fraud by allegedly helping to rig the London Interbank Offered Rate (LIBOR).

The trader allegedly played a substantial role in the manipulation of the key global benchmark interest rate. The jury convicted him on all fraud counts that were brought by prosecutors.  Although, there are many other traders alleged to be involved in the LIBOR scandal, Hayes was the first to be tried.

Securities regulators worldwide have been investigating the LIBOR scandal for years, leading to billions of dollars in fines against some of the world’s biggest banks. In June, 2012, Barclays PLC settled for $450 million.  UBS subsequently agreed to a $1.5 billion settlement that accompanied a guilty plea in December 2012.  More recently, Royal Bank of Scotland PLC agreed to pay $612 million and entered a guilty plea in February 2013. Most recently, Deutche Bank AG agreed to pay $2.5 billion to settle with U.S. and U.K. authorities in April. of this year.

At the time of the Deutche Bank settlement,  U.S. officials indicated as many as five more banks were still be investigated in connection with the plot.

The experienced securities fraud attorneys at Colling Gilbert Wright & Carter represent investors in the Commodities Futures Trading Commission (CFTC) and the National Futures Association (NFA). If you have lost money as a result of an investment in foreign currencies or other commodities, please contact us for a free case evaluation.