Tom Hayes’ lawyer slams lack of disclosure around $100m Citi settlement over Libor rigging in US
The lawyer for Tom Hayes, a former Citi banker jailed for rigging the London Interbank Offered Rate (Libor), has slammed the Serious Fraud Office (SFO) for failing to disclose the bank's recent settlement with a group of US states over allegations it manipulated the interest rate benchmark.
The banking giant reached a $100m (£76m) settlement with US states on Friday, which were pursuing the bank for "misrepresenting the integrity of the benchmark" for commercial gain. Among the allegations was that Citi's USD Libor submitters asked personnel from other desks or divisions to avoid offering higher interest rates to clients in order to secure funding because it could bring negative attention in the media.
As part of the settlement, Citi said it neither admitted or denied the allegations but had entered into the voluntary settlement "solely for the purpose of resolving the claims and causes of action against Citi".
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Hayes was the first person to be convicted of Libor rigging in the UK. After his case was referred to the Court of Appeal and subsequently rejected, it now lies in the hands of the Criminal Cases Review Commission (CCRC), a body that investigates potential miscarriages of justice.
Hayes is currently serving an 11-year prison sentence at Lowdham Grange prison in Nottingham.
Hayes' lawyer, Karen Todner, said none of the evidence regarding the Citi settlement was disclosed before his trial or in the aftermath to the CCRC, despite his defence resting on the assertion that Libor rigging was an "industry-wide practice".
Todner told City A.M: "Tom Hayes has been a scapegoat for what is clearly an institution-wide problem. This document and any investigation have never been disclosed to Tom either before his trial or after.
"The SFO has an ongoing duty of disclosure. This should have been disclosed."
Todner said the settlement would be flagged before the CCRC, which has been looking into Hayes' case for 15 months.
A spokesperson for the SFO said: “The Criminal Cases Review Commission is examining this and we stand ready to assist them.”
Citi was contacted for comment but did not respond in time for publication.
Read more: Lawyers slam SFO for 'miscarriage of justice' in Tom Hayes case