Warning shot to the City as trader Tom Hayes’ conviction over Libor scandal upheld | City A.M.
The City was sent a stark warning yesterday that authorities will continue to crack down on financial crime as Court of Appeal judges upheld Tom Hayes’ conviction for Libor rigging.
Hayes, who was found guilty on eight charges of conspiracy to defraud and sentenced to 14 years in August for his role in the manipulation scandal, had his jail time cut to 11 years by the Court of Appeal.
The message to the City was that misconduct will not go unpunished. Ben Rose, white collar crime expert and a founding partner at law firm Hickman & Rose, said: “Those watching hopefully from the Square Mile will no doubt be disheartened by [the] result. Eleven years is still a substantial sentence for a financial crime.
When handing down his sentence in August, Justice Jeremy Cooke said Hayes’ conduct “must be marked out as dishonest and wrong and a message sent to the world of banking accordingly”.
In reducing the sentence, the judges took into account Hayes’ relative youth, the fact he did not hold a managerial position at the two banks he worked for and his mild Asperger’s syndrome. Once these mitigating factors had been accounted for, the judges determined that the original sentence was longer than needed to punish Hayes and deter others.
Proudlock added that those awaiting trial on similar charges could probably take comfort in the sentence reduction, but noted that it was still high by UK standards and "has arguably raised the bar".
Yesterday I lost a battle to have my conviction in relation to Libor overturned. Whilst I am immensely disappointed with this result, I am relieved and grateful that the extremely long sentence imposed on me has been reduced.
The judges hearing the appeal were the Lord Chief Justice John Thomas, head of the judiciary for England and Wales, Sir Brian Leveson – well-known for his role in the inquiry into media industry ethics – and Lady Justice Gloster.