Ex-ICAP Brokers Conspired With Hayes to Rig Yen Libor, SFO Says

Three ex-ICAP Plc brokers accused of manipulating benchmark interest rates tied to the Japanese yen conspired with Tom Hayes, a former UBS AG and Citigroup Inc. trader who was the first to be charged in the global probe, prosecutors said.

Daniel Wilkinson, Colin Goodman and Darrell Read were granted bail at a hearing in London today and had their case transferred to a higher criminal court. They’re scheduled to appear at Southwark Crown Court on April 30, along with Hayes and two former RP Martin Holdings Ltd. brokers, James Gilmour and Terry Farr.

The details of the case against the ICAP trio were published today in charges by the U.K. Serious Fraud Office, which is prosecuting the case. Wilkinson, Read and Goodman are accused of conspiring with Hayes and other employees of UBS in Japan between Aug. 8, 2006 and Dec. 3, 2009, to rig the yen London interbank offered rate, or Libor, to give an advantage to Hayes’s trades.

The men “dishonestly agreed to procure or make submissions of rates by panel banks in the yen Libor setting process which were false or misleading” and “deliberately disregarded the proper basis for the submission of those rates,” the SFO said.

Wilkinson and Goodman, both from England, and Read, who lives in New Zealand, haven’t entered pleas in the case. Lawyers for Wilkinson and Read declined to comment after the hearing. Goodman “strongly asserts his innocence,” his lawyer, David Janes, said in a statement last month.

U.S. Charges

Goodman and Read were also charged with conspiring with Hayes from Dec. 1, 2009, until Sept. 7, 2010, while he worked at Citigroup in Japan, to rig yen Libor. The three men, who have been charged in the U.S. over Libor-rigging, had their case joined with Hayes, Farr and Gilmour.

Regulators and prosecutors around the world are probing how derivatives traders and bankers who submitted interest-rate data colluded to ensure benchmarks benefited their own trades, potentially affecting more than $300 trillion of loans, financial products and contracts tied to the rate, issuing around $6 billion in fines against financial institutions.

ICAP became the first interdealer broker fined in the probe in September with an $88 million penalty by U.S. and U.K. authorities for rigging Libor.

Hayes is scheduled to be the first person to stand trial for Libor manipulation in the U.K., in January. Farr and Gilmour will follow with a trial in September 2015.

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