U.S., UK Fine ICAP, Charge Former Staff over Libor Rigging
London – U.S. and British authorities on Wednesday fined ICAP, the world’s biggest interdealer broker, $87 million and criminally charged three former employees for their role in the Libor benchmark rate rigging scandal.
The scandal, which has laid bare the failings of regulators and bank bosses, has triggered a sprawling global investigation that has already seen three banks fined $2.6 billion, four individuals charged, scores of institutions and traders grilled and a spate of lawsuits launched.
The U.S. Department of Justice (DoJ) charged New Zealand resident Darrell Read alongside Daniel Wilkinson and Colin Goodman, both from England, with conspiracy to commit wire fraud and two counts of wire fraud in a criminal complaint.
Simultaneously, the U.S. Commodity Futures Trading Commission (CFTC) and UK Financial Conduct Authority (FCA) ordered ICAP’s ICAP Europe Ltd unit (IEL) to pay $65 million and 14 million pounds ($22 million), respectively, to settle allegations of wrongdoing. “These three men are accused of repeatedly and deliberately spreading false information to banks and investors around the world in order to fraudulently move the market and help their client fleece his counterparties,” said acting assistant attorney General Mythili Raman of the DoJ’s criminal division.
They each face a maximum penalty of 30 years in prison for each count in the event of a successful conviction. (Reuters)