October 24, 2018 / 3:45 PM / 10 months ago

Extradited Euribor trader electronically tagged ahead of 2019 trial

* First successful extradition in British Euribor prosecution

* Trial of German national Andreas Hauschild set for June 2019

* Brexit likely to hamper extraditions in future - lawyer


By Kirstin Ridley

LONDON, Oct 24 (Reuters) - A former Deutsche Bank trader charged with conspiring to rig Euribor interest rates was on Wednesday electronically tagged ahead of a London trial next June after becoming the first banker to be extradited to Britain for the alleged crime.

Andreas Hauschild, a 54-year-old German, was also ordered by a London court to pay a 700,000 pound ($900,000) bail security, surrender identity and travel documents and report daily to a local police station after he was extradited from Italy last week.

The UK Serious Fraud Office (SFO) was granted European Arrest Warrants for Hauschild, three other Germans and one Frenchman in 2016 after they did not attend court to be formally charged over manipulating Euribor (euro interbank offered rate), a benchmark for more than $150 trillion of financial contracts.

However, Germany and France refused to extradite the men. Hauschild was only brought to Britain after he triggered the arrest warrant by travelling to Italy.

He has been charged with one count of conspiracy to defraud with others at Deutsche Bank, Barclays, Societe Generale and other banks between January 2005 and December 2009. Prosecutors allege he deliberately and dishonestly manipulated Euribor.

Hauschild’s lawyer, John Bramhall at DAC Beechcroft, did not respond to requests for comment.

The SFO’s six-year investigation into how traders set Euribor rates has been tricky. Of the 11 individuals the agency originally wanted to charge, only six have so far faced trial.

One was acquitted, three face a retrial next January after a jury failed to reach a verdict, and two were convicted - although one was tried in absentia and remains in France.

But Hauschild’s extradition from Italy demonstrates the determination of new SFO director Lisa Osofsky to pursue the case, and the “huge advantage” to prosecutors of European Arrest Warrants, said Nick Vamos, a lawyer at Peters & Peters.

“After the UK leaves the EU, extradition is likely to be much slower and will depend on knowing a suspect’s location,” he said.

“Given that Germany rejected the SFO’s request because the statute of limitations had expired on the equivalent German offence, this would make it far easier for fraud suspects to lay low and run down the clock to avoid justice.”

If Britain leaves the EU next March without any agreement, British authorities could be frozen out of the bloc’s policing mechanisms such as European Arrest Warrants or the data held by its law enforcement agency Europol.

Global authorities have fined leading banks and brokerages about $9.0 billion over rate-rigging allegations. Barclays paid $453 million in 2012 and Deutsche Bank settled its case for $2.5 billion in 2015.

$1 = 0.7739 pounds Reporting by Kirstin Ridley Editing by Mark Heinrich

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