Three Barclays employees found guilty of Libor rigging

Barclays-Building-2012-700x450.jpgThree former employees of Barclays have been found guilty of Libor rigging, being convicted unanimously.

Jonathan Mathew, Alex Pabon and Jay Merchant have all been found guilty after a 10-week trial and will be sentenced on Thursday, the BBC reports.

The jury could not reach a verdict on two other defendants, Ryan Reich and Stelios Contogoulas, following two weeks of deliberation. The Serious Fraud Office will now decide whether the duo will be subject to a retrial.

The prosecution claimed traders Merchant, Pabon, Reich and Contogoulas requested rate submitters Mathew and Johnson set rates at a level that suited them.

Sarah Wallace, partner and head of the regulatory and criminal investigations group at Irwin Mitchell, says: “If the SFO were smarting from the broker acquittals in the second Libor trial, they will feel vindicated and emboldened by these verdicts – as well as a little relieved as the jury deliberated for some time.

“Whether it signals further UK Libor prosecutions remains to be seen – although after the forthcoming Euribor trial the SFO may draw a line underneath benchmarks. The irony for those convicted is whether they may have fared better had they been dealt with in the States.“

Barclays declined to comment.

Former City trader Tom Hayes, was convicted of Libor rigging last August. His prison sentence was subsequently reduced to 11 years from 14 years after the Court of Appeal considered mitigating factors.

In January, five City brokers accused of manipulating the Libor rate were cleared in a London court. Noel Cryan, Danny Wilkinson, Colin Goodman, James Gilmour and Terry Farr, were all found not guilty.

The FCA has already banned former Royal Bank of Scotland employee Paul White for “reckless” Libor submissions and banned a former Deutsche Bank trader from the industry following a criminal fraud conviction in the US.