Ex-Barclays traders found guilty of rigging Libor

Sentencing to be held on Thursday in SFO’s latest Libor success.

Three ex-Barclays employees have been found guilty of rigging Libor rates at a London court.

Jay Merchant, 45, Jonathan Mathew, 35, and Alex Pabon, 38, were all found guilty at Southwark Crown Court and will be sentenced on Thursday.

The three were convicted of manipulating Libor rates between 2005 and 2007 by submitting daily Libor estimates to the British Bankers Association that benefitted their trading strategies.

A fourth man, Peter Johnson, 61, had earlier pleaded guilty as part of the same case brought by the Serious Fraud Office (SFO).

The men had told the court the Libor submissions had been sanctioned by their bosses at Barclays and were made over open communications systems in full view of compliance staff.

The first man to be successfully prosecuted by the SFO, Tom Hayes, was convicted in August last year and sentenced to 14 years imprisonment, though this was later reduced to 11 years on appeal. However, another case in January against six former brokers was dismissed, in what was seen as a major blow for the SFO.