• Judge chatises Hayes for `derogatory comments to counsel'
  • Hayes is serving an 11-year sentence for rigging Libor

Tom Hayes, the former trader serving an 11-year prison sentence for rigging Libor, lashed out at prosecutors and his former lawyers as he battled attempts to seize his family home, exclaiming "all this mud you keep slinging around is disgraceful."

Hayes testified for a second day at a London hearing where prosecutors are seeking assets they argue were proceeds from his efforts to tweak the London interbank offered rate. The seven-bedroom house in Sussex, England, is the main item left over from his days as a high-flying trader at UBS Group AG and Citigroup Inc.

An animated Hayes accused his former lawyers at Fulcrum Chambers of acting outside his interests and lying about what he’d told them before he dropped them for another firm in 2013.

The 36-year-old transferred half of the property, known as the Old Rectory, to his wife in 2013 so she could take a mortgage amid mounting legal fees. According to prosecutors, Hayes made the decision without informing the Serious Fraud Office, against the advice of his then lawyers at Fulcrum Chambers.

"My instructions had not been followed," said Hayes. "What sort of legal service is that, where people make legal decisions without even asking you?"

Hayes was convicted in August of conspiring to rig Libor, a benchmark rate tied to trillions of dollars worth of loans and derivatives. His 14-year sentence was cut by three years on appeal.

No one was immediately available at Fulcrum Chambers to respond to Hayes’s testimony.

As he was throughout his trial last year, Hayes -- who has been diagnosed with Asperger’s Syndrome -- was accompanied by an attendant who helped him to keep his emotions in check.

A disheveled and unshaven Hayes became increasingly exasperated as prosecutors probed his dealings, exclaiming at one point: "All this mud you keep slinging around is disgraceful."

When Hayes shouted that the prosecutor was misrepresenting and manipulating his answers, the judge chastised him for "making derogatory comments to counsel."

Before it's here, it's on the Bloomberg Terminal. LEARN MORE