The Libor scandal won’t be going away anytime soon. Prosecutors with the U.K.’s Serious Fraud Office are scheduled to appear in court on Monday for a hearing about the case. According to The Wall Street Journal’s David Enrich and Jenny Strasburg, they are expected to name as many as 24 brokers and traders as co-conspirators in the scandal.
Alleged co-conspirators have yet to be charged
The case currently involves two former brokers and a former bank trader. All three are accused of manipulating the Libor benchmark rates. Sources told The Wall Street Journal that at Monday’s hearing, lawyers are expected to present the names of those they claim conspired with the three people who have already been charged. None of these alleged co-conspirators have been charged with anything yet.
According to the sources, multiple current and former brokers and traders are expected to be named as possibly being linked to the scandal.
Traders expected to plead not guilty to fixing Libor
The WSJ also reports that ex Citigroup Inc (NYSE:C) and UBS AG (NYSE:UBS) trader Tom Hayes is expected to enter a plea of not guilty. He faces eight counts of charge in connection with allegedly fixing Libor. Two brokers, James Gilmour and Terry Farr, who formerly worked at R.P. Martin Holdings Ltd. who face similar charges are also expected to enter their pleas. However, it is not known how they plan to plea.
When the Serious Fraud Office names the alleged co-conspirators, it will not be a formal accusation. The people on the list may not ever be charged in the case. Prosecutors are said to be finalizing their plans for the hearing, and sources indicated that the list of names might change between now and then. Lawyers representing some people in the financial industry have apparently contacted the Serious Fraud Office to ask prosecutors not to release their names publicly. However, lawyers don’t believe the requests were heeded.
Possible names on the list
Among those who could be name are several of Hayes’ former coworkers at both Citigroup Inc (NYSE:C) and UBS AG (NYSE:UBS). Michael Pieri, who was Hayes’ boss while he worked at UBS, was fired by the bank and moved to Australia. Hayes’ former assistant at UBS, Mirhat Alykulov, could also be on the list. Sources said he has been cooperating with investigators from the U.S.
Another name which could be on the SFO’s list is Christopher Cecere, who was Hayes’ boss while he worked in Citigroup’s Tokyo operations. Cecere resigned from his position at Citigroup around the same time Hayes was fired. Other people who could be on the list are ex HSBC Holdings plc (NYSE:HBC) (LON:HSBA) trader Luke Madden, former JPMorgan Chase & Co. (NYSE:JPM) employee Paul Glands, and former Rabobank employee Paul Robson.