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Two former Rabobank traders convicted in US Libor rigging trial Two former Rabobank traders convicted in US Libor rigging trial
(about 3 hours later)
Two British citizens face lengthy prison sentences in the US after being convicted of rigging Libor interest rates, in the first case of its kind to reach a courtroom across the Atlantic. Two British citizens face lengthy prison sentences in the US after being convicted of fixing the Libor interest rate in the first case of its kind to reach a courtroom across the Atlantic. The two former traders at the Dutch Rabobank, Anthony Allen, Rabobank’s former global head of liquidity and finance, and Anthony Conti, a former senior trader, both intend to appeal against the verdicts reached by a federal jury in Manhattan.
The two former traders at the Dutch bank Rabobank – Anthony Allen, Rabobank’s former global head of liquidity and finance, and Anthony Conti, a former senior trader – both intend to appeal against the verdicts reached by a federal jury in Manhattan. The US justice department said the verdicts showed that the authorities were determined to crack down on financial crime. “Today’s verdicts illustrate the department’s successful efforts to hold accountable bank executives responsible for this global fraud scheme,” said Leslie Caldwell, head of the Justice Department’s criminal division.
The US justice department said the verdicts showed that the authorities were determined to crack down on financial crime. Allen, 44, slumped over a table in court as the jury foreman read out the verdict. Conti, 46, held his head up. Lawyers for both men said they planned to appeal. “This is just round one,” Michael Schachter, Allen’s lawyer, said. “Tony Allen looks forward to pursuing all available options. He is disappointed with the verdict.” They will be sentenced next March and were not remanded in custody.
“Today’s verdicts illustrate the department’s successful efforts to hold accountable bank executives responsible for this global fraud scheme,” said Leslie Caldwell, head of the Justice Department’s criminal division. Related: Australian former Rabobank trader arrested over Libor rate-rigging scandal
Allen, 44, slumped over a table in court as the jury foreman read out the verdict. Conti, 46, held his head up. Lawyers for both men said they planned to appeal. “This is just round one,” Michael Schachter, Allen’s lawyer, said. “Tony Allen looks forward to pursuing all available options. He is disappointed with the verdict.”
They will be sentenced next March and were not remanded in custody.
Of 13 people charged by the Justice Department with offences related to Libor rigging, seven are former Rabobank traders, including Allen and Conti, who earlier this year waived their right to extradition to fight the charges.Of 13 people charged by the Justice Department with offences related to Libor rigging, seven are former Rabobank traders, including Allen and Conti, who earlier this year waived their right to extradition to fight the charges.
Prosecutors said Allen and Conti participated in a five-year conspiracy at Rabobank to rig Libor rates in dollar and yen. They relied on testimony by three former Rabobank traders who pleaded guilty as part of cooperation deals, as well as emails and instant messages they sent at the time. Prosecutors said Allen and Conti participated in a five-year conspiracy at Rabobank to rig Libor rates in dollar and yen. They relied on testimony from three former Rabobank traders who pleaded guilty as part of cooperation deals, as well as emails and instant messages that were sent at the time.
Prosecutor Brian Young had cited several emails as “rock solid evidence” and said the pair had left a “left a paper trail a mile long”. He had told jurors the two British citizens were “active and enthusiastic participants” in a conspiracy at Rabobank to rig Libor rates. Prosecutor Brian Young had cited several emails as “rock solid evidence” and said the pair had left a “left a paper trail a mile long”. He had told jurors that the two British citizens were “active and enthusiastic participants” in a conspiracy at Rabobank to rig Libor rates.
Lawyers for Allen and Conti argued that while others at the bank may have been trying to rig Libor, their clients had submitted honest rate estimates. They argued prosecutors took documents out of context and cooperating witnesses lied about their clients’ role in the scheme in hopes of getting lenient sentences. Lawyers for Allen and Conti argued that while others at the bank may have been trying to rig Libor, their clients had submitted honest rate estimates. They argued that prosecutors took documents out of context and that cooperating witnesses lied about their clients’ role in the scheme in the hope of getting lenient sentences.
Allen opted to testify in his own defence, telling jurors he rarely was involved personally in submitting numbers used to calculate Libor and that in those few instances he ignored traders’ requests to bias the rate. Schachter had argued the prosecution case against his client boiled down to just 12 emails and instant messages over four years. Allen opted to testify in his own defence, telling jurors he rarely was involved personally in submitting numbers used to calculate Libor and that in those few instances, he ignored traders’ requests to bias the rate. Schachter had argued that the prosecution case against his client boiled down to just 12 emails and instant messages over four years.
Schachter had told the court: “This is the kind of case that the more you look, the more you dig in, the more the prosecution’s case falls apart. The pieces here don’t fit together because Tony Allen is not guilty.” Schachter had told the court: “This is the kind of case that, the more you look, the more you dig in, the more the prosecution’s case falls apart. The pieces here don’t fit together because Tony Allen is not guilty.”
Aaron Williamson, Conti’s lawyer, had said: “Tony never let a trader’s request influence him to make a fraudulent Libor submission.”Aaron Williamson, Conti’s lawyer, had said: “Tony never let a trader’s request influence him to make a fraudulent Libor submission.”
In the UK a former trader of Swiss bank UBS, Tom Hayes, is serving 14 years in jail after being convicted of rigging Libor by jury earlier this year. In the UK, a former trader at the Swiss bank UBS, Tom Hayes, is serving 14 years in jail after being convicted of rigging Libor by jury earlier this year.
The trials followed a string of regulatory fines on banks, starting with Barclays which was fined £290m in June 2012 by authorities on both sides of the Atlantic. The fine on Barclays sparked a public outcry and led to the creation of the parliamentary commission on banking standards, chaired by Conservative MP Andrew Tyrie, which set out a series of measures to tighten up ethics in the City. The trials followed a string of regulatory fines on banks, starting with Barclays, which was fined £290m in June 2012 by authorities on both sides of the Atlantic. The fine sparked a public outcry and led to the creation of the parliamentary commission on banking standards, chaired by Conservative MP Andrew Tyrie, which set out a series of measures to tighten up ethics in the City.
Rabobank was fined £662m by regulators in October 2013 for the Libor scandal, sparking a move by the bank’s chairman Piet Moerland to step aside earlier than he planned. The UK regulator, the Financial Conduct Authority, levied £105m of the total. Rabobank was fined £662m by regulators in October 2013 over the Libor scandal, sparking a move by the bank’s chairman, Piet Moerland, to step aside earlier than he had planned. The UK regulator, the Financial Conduct Authority, levied £105m of the total.
In total, some 22 people in the US and UK have been charged and a series of trials are already underway. In total, some 22 people in the US and UK have been charged, and a series of trials are already under way. US prosecutors have also brought charges against two other Rabobank traders.
US prosecutors have also brought charges against two other Rabobank traders.