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Conviction Overturned: Ex-Trader May Sue Over Rate-Rigging Case

Tom Hayes, the former Libor trader whose 2015 fraud conviction was overturned by the Supreme Court yesterday, is considering suing for compensation. Hayes, who served five and a half years in prison, said he would seek legal advice on potential civil claims, which could target his former employers, UBS and Citigroup.

 

"Whether I have any civil claims is yet to be determined," Hayes said. "I'm not ruling it out, but I don't yet have enough information. In the U.S., most people whose convictions were overturned went on to sue their former banks and reached settlements."

 

His lawyer, Karen Todner, said Hayes is exploring legal options against several authorities and added there is a strong likelihood of a claim being filed. Legal experts suggest he could be entitled to millions in compensation, including for lost earnings, from entities such as the Serious Fraud Office (SFO) and his former employers.

 

Hayes earned over £1 million during his three years at UBS, and £3.5 million in nine months at Citigroup. UBS declined to comment. Citigroup has been approached for a response.

 

Hayes was originally convicted of manipulating Libor rates while working at UBS and Citigroup between 2006 and 2010. Libor, once used to price over £270 trillion in global financial products, became the focus of regulatory scrutiny following the 2008 financial crisis. Several traders were prosecuted in both the UK and US, with mixed outcomes.

 

Hayes fought for nearly a decade to overturn his conviction, which was blocked five times by the Court of Appeal. The Supreme Court finally ruled in his favour, citing a misdirection of the jury that denied him a fair trial.

 

Reflecting on the impact of his imprisonment, Hayes said it destroyed his family life, led to his divorce, and caused him to miss much of his son's childhood.

 

While compensation from the UK Government is technically possible under a statutory scheme, Hayes said he has "no confidence" in receiving anything due to legal constraints. "I'm sort of at peace with that," he said. "My priority now is ensuring that all seven convicted individuals have their names cleared."

 

He added that while suing the banks might result in a financial settlement, it would be more meaningful to help reform the criminal appeals system. "It might make me happy for a while, but real change matters more."

 

Also exonerated was Carlo Palombo, a former Barclays trader who had been jailed in 2019 for Libor rigging.

 

 

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