"Tom Hayes, the first banker jailed over Libor interest rate rigging, is suing his former employer UBS for $400m (300m), claiming he was a hand-picked scapegoat for the Swiss bank as it tried to avoid regulatory scrutiny. The claim, which was publicly filed in a US court in Connecticut on Monday, alleges that UBS misled US authorities and called him an evil mastermind behind the alleged Libor scandal, in order to protect senior executives and minimise fines."
"Hayes spent five and a half years of an 11-year term in prison after he was accused of being a ringleader in a vast conspiracy to fix the now defunct London Interbank Offered Rate (Libor), which was used to price trillions of pounds worth of financial products, between 2006 and 2010. The wider scandal, which erupted in 2012, led to fines of almost $10bn for a dozen banks and brokerages."
"That decision was based on faults in the original trial, with the original judge determined to have given inaccurate and unfair instructions to the jury that found Hayes guilty on charges of conspiracy to defraud. This meant the former banker was ultimately deprived of a fair trial. However, the supreme court judges stopped short of fully exonerating Hayes, saying there was ample evidence that could have led a jury, if properly directed, to find him guilty."
Tom Hayes is suing UBS for $400m, alleging the bank made him a scapegoat and misled US authorities to protect senior executives and minimise fines. Hayes served five and a half years of an 11-year sentence after being accused of leading a conspiracy to fix Libor between 2006 and 2010. The Libor scandal prompted nearly $10bn in fines for banks and brokerages. Hayes maintained his innocence and sued for malicious prosecution, alleging a flawed UBS investigation. The UK supreme court overturned his conviction because of unfair jury instructions but stopped short of full exoneration.
Read at www.theguardian.com
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