Two former RP Martin Holdings Ltd. brokers charged over manipulation of the London interbank offered rate conspired with employees at UBS AG, Tullett Prebon Plc, Rabobank Groep and HSBC Holdings Plc, U.K. prosecutors alleged in court papers.
Terry Farr, 41, and James Gilmour, 48, were charged with conspiring with employees of the firms and Tom Hayes, a former UBS trader in Tokyo who was arrested with the two men in December, over a three-year period. Farr was also charged with conspiring to rig yen Libor after Hayes had left UBS and was working for Citigroup Inc., from the end of 2009 until September 2010.
Farr and Gilmour appeared today in Westminster Magistrates’ Court for the first time after being charged at a police station earlier in the week. The two men had their case transferred to Southwark Crown Court in London for a July 30 hearing. They were told by the judge not to contact each other, or Hayes.
The two men were charged with “dishonestly seeking to manipulate the yen Libor and other interbank offered rates,” with “the intention that the economic interests of others would be prejudiced and/or to make personal gain for themselves or another,” the U.K.’s Serious Fraud Office said in an indictment.
Hayes was charged with eight counts of conspiracy to defraud by the SFO last month. He has also been charged by the U.S. Justice Department, which is running a parallel criminal investigation.
“It is regrettable that of all the very many organizations and individuals who may have contributed to the failings of Libor-setting, the SFO has chosen to charge Mr. Farr, an unqualified interbank broker who had no responsibility whatsoever for setting Libor rates, a minnow in a very large pond, for doing what he believed to be his job,” his lawyers at Bindmans LLP said in an e-mailed statement earlier this week.
A lawyer for Gilmour, Sean Curran, declined to comment. Farr’s lawyers declined to comment beyond their previous statement.
Dominik Von Arx, a spokesman for Zurich-based UBS, and Jezz Farr, a spokesman for London-based HSBC, declined to comment on the hearing. Calls to Tullet Prebon and RP Martin weren’t immediately returned.
Roelina Bolding, a spokeswoman for Netherlands-based Rabobank, didn’t immediately respond to a request for comment.