Court of Appeal Overturns Rate-Rigging Convictions for Five Former Barclays Traders

The Court of Appeal has overturned the convictions of five former Barclays traders previously found guilty of conspiring to manipulate Euribor rates. Jay Merchant, Jonathan Mathew, Philippe Moryoussef, Alex Pabon, and Colin Bermingham saw their previous verdicts quashed following a review that highlighted concerns over inducements offered to a crucial US government witness.

This decision stems from new evidence presented concerning the testimony of Paul White, a former Barclays manager who cooperated with the US Department of Justice. White, whose evidence was central to securing the original convictions, reportedly received a non-prosecution agreement from US authorities. The defence argued that this arrangement, which included the absence of any extradition request for White by the US government and his continued employment, amounted to an inducement that should have been disclosed to the original trial jury.

The Court of Appeal found that the undisclosed inducements undermined the fairness of the initial trial, deeming the convictions unsafe. While the Serious Fraud Office (SFO) stated it was 'disappointed' by the outcome, the ruling underscores persistent challenges in prosecuting complex financial crimes across international jurisdictions, particularly when reliance is placed on testimony from witnesses who have secured favourable agreements with foreign authorities.