Jailed Barclays Libor Traders Lose Bid to Appeal Convictions

  • Jonathan Mathew, Alex Pabon and Jay Merchant denied appeal
  • All three were convicted in London in July over Libor-rigging

Three former Barclays Plc traders sent to prison for Libor manipulation were denied permission to appeal their convictions by a U.K. judge, narrowing the possibility that their guilty verdicts will be overturned.

Requests for an appeal by Jonathan Mathew, Alex Pabon and Jay Merchant were all turned down by a London judge earlier this month, a court clerk said Friday. Merchant was also denied leave to challenge his 6 1/2-year sentence, the clerk said.

The men were found guilty in July following a three-month trial in which they were accused of conspiring with other Barclays employees to rig the London interbank offered rate between 2005 and 2007. Mathew received a 4-year sentence, while Pabon was handed 2 years and 9 months. Another ex-trader from the British bank, Peter Johnson, pleaded guilty in October 2014 and received a 4-year sentence.

Lawyers for Mathew, Pabon and Merchant declined to comment as did a spokeswoman for the U.K. Serious Fraud Office, which prosecuted the case.

The men have a month to decide if they want to renew their request for an appeal to the court orally. If leave is turned down a second time at a hearing, there is no further judicial avenue for appeal. Libor is a key benchmark rate behind more than $350 trillion in securities, including mortgages.

The SFO has secured five convictions from 13 men prosecuted with manipulating Libor. Two defendants will be retried in February and another trial involving as many as 11 people relating to rigging of the euro interbank offered rate, a counterpart of Libor, is scheduled to take place in September.

Tom Hayes, a former UBS Group AG and Citigroup Inc. trader, became the first person to be convicted over Libor manipulation last year and is serving an 11-year sentence. An application to appeal his case to the Supreme Court was denied and he’s referred the matter to the Criminal Cases Review Commission, an independent organization set up to investigate suspected miscarriages of justice.

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