Tom Hayes sentence reduced over Libor manipulation

21 December,, Lagos – Tom Hayes, the former UBS and Citibank trader depicted as the ring leader in the Libor-rigging collaboration case with other bank traders and brokers over four years, has won appeal for a reduced prison sentence. Prosecutors for the U.K. Serious Fraud Office tagged Hayes as the core instrumentalist in orchestrating the manipulation in connivance with other banks and traders.

The Tom Hayes sentence was initially 14 years imprisonment. He has now won a reduction in the sentence down to 11 years, but failed in his appeal to overturn the entire conviction. According to the decision by the a London appeals court, it was decided that the 14-year sentence “was longer than was necessary” as chastisement for Mr. Hayes and deter others from wrongdoing. However, the appeals court rejected arguments by Mr. Hayes’s lawyers that Judge Jeremy Cooke had made legal errors in handling the case.

Mr. Hayes in a statement said he was “relieved and grateful” that the sentence had been reduced, despite the disappointment of losing the appeal. “I continue to maintain my innocence,” Mr. Hayes said.

“I never asked for a dishonest or inaccurate Libor rate to be submitted. I was at secondary school when these practices started—I am not the ‘ring master’,” Mr. Hayes said.

Initial conviction

Back in August, a jury found Mr. Hayes guilty of eight counts of conspiracy to defraud, based on his role in attempting to rig interest-rate benchmarks while working at UBS Group AG and Citigroup Inc. His conviction marked the first criminal conviction of an individual for rigging the widely used London interbank offered rate, or Libor. This is also in connection with the trial of six former brokers, who pleaded not guilty.

According to Britain’s Serious Fraud Office (SFO), Darrell Read, Colin Goodman, Danny Wilkinson, Terry Farr, James Gilmour and Noel Cryan all took part in a conspiracy with former UBS and Citigroup trader Tom Hayes and other brokers and traders to rig yen-denominated Libor rates for profit. The serious fraud office have accused these men of deceptively agreeing to procure Libor rates that will serve their benefit at the expense of the due process of how the rates should be set, hence prejudicing the economic interest of others.

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