The Court of Appeal will today begin hearing the cases of two former traders convicted and jailed over the manipulation of key benchmark interest rates. 

The cases of Tom Hayes and Carlo Palombo were referred to the Court of Appeal by the Criminal Case Review Commission. Following a ‘wide-ranging and complex’ review. the commission found there was a ‘real possibility’ the Court of Appeal could overturn both convictions.

Hayes, 44, was convicted in 2015 of multiple charges of conspiracy to defraud in relation to the London Inter-Bank Offered Rate (LIBOR). He was sentenced to 14 years’ imprisonment, later reduced to 11 years. Hayes served five and a half years and was released in 2021. He has always maintained his innocence.

Tom Hayes outside the RCJ. Libor scandal appeal hearing in London

Tom Hayes outside the Royal Courts of Justice this morning

Source: Tayfun Salci/ZUMA Press Wire/Shutterstock

Palombo, 45, was convicted of conspiracy to defraud by rigging the Euro Interbank Offered Rate (EURIBOR) benchmark interest rate between 2005 and 2009.  He was sentenced to four years’ imprisonment following a 2019 trial at Southwark Crown Court.

In a statement ahead of the appeal hearing, Hayes said: ‘I am looking forward to the Court of Appeal hearing my case. It has been a long and very difficult road but I hope to finally clear my name and put this nightmare behind me.’

Lawyers representing Hayes and Palombo will argue that Lord Justice Bean, Lord Justice Popplewell and Mr Justice Bryan should emulate the US Second Circuit Court of Appeal which in 2022 cleared traders convicted in similar circumstances. Outstanding US charges against Hayes were dropped.

Carlo Palombo outside the RCJ

Carlo Palombo pictured today

Source: Mark Thomas/Shutterstock

At a media briefing ahead of the appeal, Hayes’ solicitor Karen Todner said: ‘Many lives have been ruined, not just Tom’s, by the series of cases against relatively junior traders and bankers and the Court of Appeal now has the opportunity to put things right.

‘The prosecutions against the bankers should never have been brought. The UK is now the only country in the world where taking commercial consideration into account in setting LIBOR rates is considered to be a criminal act.

‘Tom Hayes and the bankers who followed him to trial were used as scapegoats by the establishment, for the financial crisis of this country was in at the time, and it’s time to put this wrong right.'

 

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