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Ex-Barclays bankers could face retrial over Libor rigging allegations

Published 06/07/2016

A jury failed to reach verdicts on Ryan Reich after an 11-week trial at Southwark Crown Court
A jury failed to reach verdicts on Ryan Reich after an 11-week trial at Southwark Crown Court

Two former Barclays bankers could face a retrial over allegations that they plotted to rig the Libor rate.

The Serious Fraud Office (SFO) announced it is seeking a retrial of Stylianos Contogoulas, 44, and Ryan Michael Reich, 34, on a charge of conspiracy to defraud after a jury failed to reach a decision during a recent trial.

It had been alleged that they manipulated the US Dollar London Interbank Offered Rate between 2005 and 2007.

An SFO statement said: "The two defendants are charged with conspiracy to defraud in relation to an investigation by the SFO into the manipulation of US Dollar Libor. A jury failed to reach verdicts for the two individuals after an 11-week trial at Southwark Crown Court."

No further details have been given regarding the case against Contogoulas, 44, of Greece, and Reich, who lives in the US.

Three other former Barclays bankers and a Libor submitter were last week found guilty of conspiracy to defraud and will be sentenced at Southwark Crown Court on Thursday.

A jury found Jonathan James Mathew, 35, of Shenfield, Essex, Jay Vijay Merchant, 45, and Alex Pabon, 37, who both live in the US, guilty of manipulating the US Dollar Libor rate between 2005 and 2007.

Libor submitter Peter Johnson, 61, of Tunbridge Wells, pleaded guilty to conspiracy to defraud in October 2014.

The Libor rate is used to set millions of pounds-worth of financial deals, including car loans and mortgages. It is also used in complex overseas financial transactions.

To maximise profit from their trades, the convicted men rigged the US Dollar Libor to put themselves at an advantage and to disadvantage the people they were dealing with.

The traders were dealing with "eye-watering" sums of money when they manipulated the rate between June 1 2005 and August 31 2007, prosecutor James Hines QC said.

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