These are the Brokers Cleared of Helping Tom Hayes Rig Libor

Six ex-brokers accused of helping convicted trader Tom Hayes fix the benchmark Libor interest rate have been acquitted by a London court.

Darrell Read, a former broker at ICAP Plc, leaves Southwark Crown Court in London, U.K., on Tuesday, Oct. 6, 2015.

Photographer: Luke MacGregor/Bloomberg

Darrell Read

Former broker at ICAP Plc

Nicknames: Noggin, Big Nose
Age: 50

Well-spoken and polite, Read was the best educated of the brokers on trial, securing a degree in zoology from the University of Liverpool. He entered the world of broking in the 1980s through a rugby club connection and worked alongside fellow defendants Danny Wilkinson and Colin Goodman throughout his career. In 2007, he moved with his family to New Zealand where he could service Tokyo-based Tom Hayes in the same time zone. By then Hayes was his only client. Hayes respected Read’s knowledge of the markets and the two men became close friends and confidants, meeting up whenever they were in the same country.

Read, who dealt in derivatives, was accused of being the conduit between Hayes and Goodman. Read routinely sent Hayes’s requests for higher and lower yen Libors via instant messages and texts to Goodman, who, prosecutors said, adjusted his daily Libor prediction e-mail accordingly. Read acknowledged he passed on the requests, but said it was part of an elaborate ruse since everyone at the firm knew Goodman only ever sent out his genuine views.

“Had a lot of compliance pressure recently due to the credit problems. We both need to be little more subtle in our ‘views.’ i.e. I think the forwards are suggesting this 6M Libor should be lower et cetera. My e-mails et cetera need to be worded more carefully.”
—E-mail to Tom Hayes in November 2007. Read later switched to sending his requests via text message.
Colin Goodman, a former trader at ICAP Plc, leaves Southwark Crown Court in London, U.K. on Tuesday, Oct. 6, 2015.

Photographer: Luke MacGregor/Bloomberg

Colin Goodman

Former broker at ICAP Plc

Nicknames: Lord Libor, Bailiff
Age: 53

Goodman joined ICAP in the 1980s and worked as a cash broker, buying and selling short-term loans in the money markets. Quiet and unassuming, he was paid a fraction of many of the co-defendants. He only met Hayes on a handful of occasions and rarely spoke to him directly.

Goodman was responsible for putting together a daily Libor prediction e-mail, known as the “run-thru,” that was sent each morning to more than 100 individuals, including traders at 13 of the 16 yen Libor-setting banks. Prosecutors said Goodman tailored his predictions, which were billed as independent, to suit Hayes’s trading book. The e-mail was widely followed—for long periods submitters at two banks simply copied Goodman’s suggestions.

In 2007, after a dinner with Hayes in London, Goodman demanded he receive payment for the Libor ‘scoop,’ and he was paid 5,000 pounds ($7,100) a quarter by Wilkinson’s derivatives desk thereafter. On the few occasions he did accommodate Hayes’s requests it was to avoid confrontation, he said. Even then he says he only ever made small changes because he prided himself on the accuracy of his predictions.

“With UBS how much does he appreciate the Yen LIBOR scoop? It seems to me that he has all his glory et cetera. You guys get his support and other things, I get the dribs and drabs. Life is tough enough over here without having to double-guess the LIBORs every morning and get zipper-de-do-da.”
—E-mail to Danny Wilkinson, April 2007. Wilkinson agreed to pay Goodman a 5,000-pound fee each quarter for his “Libor services” soon after.
Daniel Wilkinson, a former trader at ICAP Plc, leaves Southwark Crown Court in London, U.K. on Tuesday, Oct. 6, 2015.

Photographer: Luke MacGregor/Bloomberg

Danny Wilkinson

Former broker at ICAP Plc

Nicknames: Sarge, Blair, Harriet Hare
Age: 49

A Larger-than-life East Londoner, Wilkinson ran ICAP’s yen swaps desk in London and was paid as much as 1 million pounds a year, more than double the highest-paid among the other defendants. Short and broad, his speech and e-mails are peppered with cockney slang. Outside of broking he is part of a dance music-collective called Hellsinki V who perform at raves wearing lab coats.

Wilkinson didn’t often speak to Hayes directly, but prosecutors accused him of sanctioning ICAP’s participation in the former UBS and Citigroup trader’s rate-rigging scheme. Wilkinson negotiated a deal for ICAP to receive 15,000 pounds a quarter from UBS for “Libor services,” of which 5,000 pounds was paid directly to Goodman. The Libor services fee from UBS was, Wilkinson said, nothing more than a payment for passing on legitimate market information.

“That’s just how it was. Banks lie to brokers, brokers lie to banks, banks lie to each other, brokers lie to each other.”
—Danny Wilkinson testimony, December 2015
Terry Farr, a former broker at RP Martin Holdings Ltd., leaves Southwark Crown Court in London, U.K., on Tuesday, Oct. 6, 2015.

Photographer: Luke MacGregor/Bloomberg

Terry Farr

Former broker at RP Martin Holdings Ltd.

Nicknames: Tel, ASBO
Age: 44

Farr left school at 15 and helped his father sell flowers at a market stall in Essex. He got a job in broking through a friend despite failing math at school and knowing nothing about finance. Friendly and gregarious, he was popular with clients, and helped RP Martin, a relative minnow in the industry, expand into the lucrative yen derivatives market.

Hayes and Farr came together after Hayes had dismissed or refused to work with as many as half a dozen of Farr’s former colleagues. Farr said he put up with Hayes’s outbursts in exchange for more business and wash trades worth tens of thousands of pounds. In 2006, he began helping Hayes influence Libor by pulling in favors from his friends in the market, including several rate-setters who he rewarded with nights out and expensive meals. Farr doesn’t deny that he helped Hayes, but said he didn’t realize it was wrong because he had no training, didn’t understand derivatives and everyone else was doing the same thing.

“I was known pretty much throughout my career as a relationship broker. Basically go out down the pub and have a few drinks, and something to eat. Or go to a sporting event, something like that. I was pretty good at that.”
—Terry Farr testimony, December 2015
James Gilmour, a former broker at RP Martin Holdings Ltd., leaving Southwark Crown Court in London, U.K on Monday, Oct. 5, 2015.

Photographer: Luke MacGregor/Bloomberg

James Gilmour

Former broker at RP Martin Holdings Ltd.

Nickname: Jim
Age: 50

Gilmour’s boss at RP Martin was Terry Farr. When Farr was on holiday, Gilmour looked after Hayes. Other than that, they had little contact. In fact, when Hayes and the thin, grey-haired Gilmour came face to face in a holding cell after their arrest in December 2012, they didn’t recognize each other.

Gilmour was accused by prosecutors of leaning on bank contacts on a handful of occasions to change Libor submissions to suit Hayes. He received a percentage of the wash trades paid by Hayes to RP Martin in recognition of the service. Gilmour said he only ever fobbed Hayes off and had no influence over what figures banks submitted.

“I’ve got my wizards hat on today.”
—E-mail sent to one of Tom Hayes’s colleagues in 2009 after the UBS trader had asked for help pushing Libor higher.
Noel Cryan, a former broker at Tellett Prebon Plc

Photographer: Luke MacGregor/Bloomberg

Noel Cryan

Former broker at Tellett Prebon Plc

Nickname: None
Age: 50

Cryan got into the finance industry after stints as a construction worker and a bookmaker in South East London. He was one of the first brokers Hayes dealt with as a graduate trainee in 2002. He watched as Hayes morphed from a shy, awkward kid to a megalomaniacal “psycho” with a “god complex.’’ A life-long supporter of Millwall soccer club, he shared a love of English football with Hayes.

In 2009, Hayes was looking for a new recruit. He messaged Cryan and asked him to start putting pressure on Tullett Prebon’s cash brokers to influence their clients’ Libor submissions. Cryan agreed and, over the course of the next few months, he told Hayes repeatedly he was ordering the cash brokers to do his bidding. In reality, Cryan said on the stand, he was simply lying to Hayes, telling him whatever he wanted to hear. His desk was paid tens of thousands of pounds in wash trades by Hayes in exchange for help rigging Libor.

“Get the CCTV, get the audio, scrutinize the calls, the chats, the e-mails, go and speak to the cash desk, speak to senior management, you won’t find anything.”
—Cryan told investigators at the Serious Fraud Office in a 2014 interview.