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By David Enrich
LONDON--British prosecutors have filed criminal fraud charges
against former UBS AG (UBS) and Citigroup Inc. (C) trader Tom Hayes
for allegedly trying to manipulate benchmark interest rates, in the
first effort by U.K. authorities to seek criminal penalties against
someone they allege was involved in manipulation of the London
interbank offered rate, or Libor.
The U.K.'s Serious Fraud Office in a statement said Mr. Hayes
has been charged with eight counts "of conspiracy to defraud in
connection with the investigation by the Serious Fraud Office into
the manipulation of Libor."
Mr. Hayes's lawyer wasn't immediately available for comment
Tuesday.
Mr. Hayes and a former colleague were charged with conspiracy to
commit fraud by the U.S. Justice Department last December. But a
successful prosecution by the U.K. would likely ensure Mr. Hayes
wouldn't face the U.S. charges, thanks to U.K. double-jeopardy laws
that preclude someone charged in the U.K. from being extradited to
face similar charges in another jurisdiction.
The trader hasn't publicly commented on his alleged role in
Libor manipulation, beyond writing in a January text message to The
Wall Street Journal that "this goes much much higher than me." His
lawyer declined to comment Monday.
A 33-year-old British citizen living near London, Mr. Hayes was
arrested by the Serious Fraud Office last December and then
released on bail. Since then, he has been cooperating with
prosecutors, who are trying to build cases against other UBS and
Citigroup employees who allegedly worked with Mr. Hayes to
manipulate benchmark interest rates, according to people familiar
with the case.
A person familiar with the charges said they relate to Mr.
Hayes's alleged actions when he worked as a yen-derivatives trader
for UBS and then Citigroup, and his efforts to coordinate his
alleged rate manipulation via interdealer brokers at ICAP PLC and
R.P. Martin Holdings Ltd. The companies declined to comment.
Write to David Enrich at david.enrich@wsj.com