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Appeal court asks for new medical report on jailed Libor trader
December 2, 2015 / 2:40 PM / 2 years ago

Appeal court asks for new medical report on jailed Libor trader

LONDON (Reuters) - London’s Court of Appeal has asked lawyers for Tom Hayes, jailed in August for conspiracy to manipulate Libor benchmark interest rates, to provide an up-to-date medical report on the former yen derivatives trader by next Wednesday.

Former trader Tom Hayes arrives at Southwark Crown Court in London, Britain August 3, 2015. REUTERS/Peter Nicholls

Lord Chief Justice John Thomas, the head of the judiciary in England and Wales, made the request after Hayes’s leading counsel Neil Hawes closed his arguments in a two-day appeal hearing against Hayes’s conviction and 14-year jail sentence - one of the longest handed down for white collar crime.

Hayes, a former UBS UBSG.VX and Citigroup (C.N) trader, was found guilty of eight charges of conspiracy to defraud for rigging Libor, the London interbank offered rate, which underpins around $450 trillion (£300 trillion) of financial contracts and consumer loans worldwide.

The 36-year-old former Tokyo-based trader was diagnosed with Asperger’s syndrome and Attention Deficit Hyperactivity Disorder (ADHD) shortly before his trial.

Hayes has been moved from London’s 19th Century Wandsworth prison - the largest in Britain - to Lowdham Grange in central England, the court heard.

Hawes has argued that Jeremy Cooke, the judge who presided over Hayes’s trial, made legal errors in the way he handled the case and that the sentence was wrong in principle and excessive.

Hayes was sentenced consecutively for the conspiracies of which he was found guilty at UBS and at Citigroup between 2006 and 2010. Had the market rigging charges been considered as one offence, he would have faced a maximum 10-year sentence.

Hawes said there were no sufficiently distinguishing features between Hayes’s conduct at UBS and Citigroup to warrant separate and consecutive sentences - and that the judge did not need to use the sentence as a deterrent to the banking industry. Regulatory changes and new laws governing Libor processes had already achieved that, he said.

He also argued the sentence did not reflect the fact the prosecution did not identify any counterparty loss, that counterparties were market professionals, that Hayes held no managerial position and that others were doing the same.

Sentencing Hayes on Aug. 3, Cooke said there was “no doubt” the sums involved in the conspiracies ran into millions of dollars and that the conduct in the case “must be marked out as dishonest and wrong and a message sent to the world of banking accordingly”.

Reporting by Kirstin Ridley; Editing by Jane Merriman and Mark Potter

Our Standards:The Thomson Reuters Trust Principles.
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