Trader Sues Ex-Employer UBS for Libor-Linked «Scapegoating»
Trader Tom Hayes is suing his former employer UBS for allegedly scapegoating him in the Libor-rigging scandal.
Tom Hayes sued his former employer UBS for $400 million for allegedly scapegoating him in the scandal that involved the rigging of the London Interbank Offered Rate (Libor), according to a «Reuters» report citing a complaint filed in a Connecticut state court. A similar case was also filed in a New York state court in Manhattan.
In the complaint, Hayes accused UBS of telling prosecutors that he had formulated the scheme to manipulate Libor rates, rather than senior management, making him the «perfect fall guy». The bank was able to avoid criminal prosecution as it paid $1.5 billion to settle US, UK and Swiss regulatory charges.
Meanwhile, Hayes was convicted in 2015 of conspiring to defraud by manipulating Libor and served about half of an 11-year prison sentence before being released in 2021.
Overturned Conviction
On July 23, the UK Supreme Court overturned Haye’s conviction, saying that the judge incorrectly told jurors that banks could not consider their commercial interests when making submissions to the Libor rate-setting process, which «undermined the fairness» of his trial.
«It has taken me over a decade to overturn my wrongful conviction and clear my name. My legal team are now rightfully holding UBS to account for scapegoating me,» said Hayes, 46, who is seeking punitive damages and said UBS ruined his career and reputation, while causing emotional and physical harm.
Libor was used to set interest rates on more than $300 trillion of financial products but it was phased out in January 2022 after banks paid $9 billion in fines to settle rigging investigations. 19 traders in the UK and US were also convicted.
