LONDON Nov 25 Three former Barclays
traders jailed for manipulating Libor benchmark interest rates
after a London trial have been denied a request to appeal
against their conviction and sentence, the wife of one said on
Julie Pabon said her husband, Alex, and former colleagues
Jay Merchant and Jonathan Mathew were recently notified that
their requests had been rejected by the Court of Appeal.
The men's lawyers and the UK Serious Fraud Office (SFO), the
prosecutor in the case, did not respond to requests for comment.
Pabon, an American, was sentenced to two years and nine
months in jail in July. Merchant, his former New York-based
superior, was sentenced to six-and-a-half years, and Mathew, a
London-based junior rate submitter, was handed four years.
"I am shocked and saddened yet somewhat relieved that our
fight appears to be nearing the end," Julie Pabon wrote in an
email received by Reuters.
Julie Pabon, an American who lives in the United States and
had appealed directly to the head of the SFO, David Green, on
behalf of her husband, said Alex had sent her a text message on
June 30 after his London trial saying: "I'm sorry ... guilty..."
"Even though it appears that we will not receive justice, I
look forward to moving on with our lives at some point in the
near future," she said. "I am saddened that this is the result
but I know that the truth will eventually come out and my
husband will be exonerated."
Merchant, Mathew and Pabon denied one count of dishonestly
skewing Libor, a benchmark for rates on about $450 trillion of
contracts and loans worldwide, between June 2005 and September
In an 11-week trial, they argued that their bosses had
sanctioned attempts to influence rates, that they did so in full
view of compliance staff, and that such practices were
widespread at the time.
But the jury found them guilty, and the judge said they had
abused their position of trust and undermined the integrity of
the banking industry. They were told they would serve half their
sentence in prison before being released on licence.
The men were convicted four years after Barclays became the
first of 11 powerful banks and brokerages to be fined for its
role in the rate-fixing scandal, sparking a political backlash
that forced out former Chief Executive Bob Diamond, an overhaul
of Libor rules and the U.K. wing of the criminal inquiry.
Two other former Barclays traders face a re-trial in
February after the jury was unable to reach a verdict in their
case. A sixth former Barclays trader, Peter Johnson, pleaded
guilty and was sentenced to four years.
Tom Hayes, a former UBS and Citigroup trader,
was the first man convicted of Libor manipulation last year. He
was sentenced to 14 years in jail, reduced to 11 years on
(Reporting by Kirstin Ridley; Editing by Leslie Adler)