Convictions of ex-trader jailed for Libor rigging referred to Court of Appeal

A former City trader jailed for rigging the benchmark Libor rate has had his convictions referred to the Court of Appeal.

In 2015, former Citigroup and UBS trader Tom Hayes was convicted of multiple counts of conspiracy to defraud over manipulating the rate previously used to set millions of pounds worth of financial deals, including car loans and mortgages.

In his trial, Hayes was described by prosecution counsel as the “ringmaster” at the centre of an enormous fraud to manipulate the benchmark interest rates and boost his own six-figure earnings.

Hayes, who has maintained his innocence, spent five-and-a-half years in prison and was released in January 2021.

Tom Hayes' conviction is a miscarriage of justice which demands immediate correction.

A previous challenge launched by Hayes was rejected in December 2015 by the Court of Appeal, though he succeeded in securing a three-year cut to his original 14-year sentence.

The former trader applied to the Criminal Cases Review Commission (CCRC) in 2017.

On Thursday, the commission said there is a “real possibility” that the Court of Appeal could overturn his convictions and referred them to the court to be reconsidered.

The commission’s decision comes after a court in the United States overturned the convictions of two other ex-traders, who were jailed in similar circumstances, and charges against Hayes in the US were dropped.

CCRC chairwoman Helen Pitcher said: “We have concluded after a lengthy and complex investigation that the Court of Appeal should clarify whether the right legal approach was taken in Mr Hayes’ case.

“We are committed to leaving no stone unturned in our comprehensive reviews of potential miscarriages of justice.”

It remains a tragedy that so many lives were ruined by the false narrative propagated from 2012 when various enquiries were lied to by multiple powerful institutions

Following the decision, Hayes said he was “delighted” by the referral.

He added: “It is now time for all those convicted of Libor rigging to get justice. Although we have all served our custodial sentence the scars of our experiences remain today and continue to plague us.

“I am pleased that the commission feels that there is a real possibility that the case in law used in our cases will be revised by either the Court of Appeal or the Supreme Court.

“Of course such a revision would merely bring the UK into line with the law used in the rest of the world.

“It remains a tragedy that so many lives were ruined by the false narrative propagated from 2012 when various enquiries were lied to by multiple powerful institutions.”

He continued: “I would like to thank my entire legal team for their tenacity and perseverance, especially those who have been with me from the darkest days in 2016 post my conviction.”

Hayes’ lawyer Karen Todner said the former trader and others had been used “as a scapegoat” by the Government and senior bankers.

She added: “The result is that Tom Hayes’ conviction is a miscarriage of justice which demands immediate correction.

“It has been a lengthy and arduous road back to the Court of Appeal but I’m glad we will finally achieve the rehearing he deserves.”