26 Sep 2013

Broker fined and former staff charged over Libor scandal

10:28 am on 26 September 2013

Authorities in the United States and Britain have fined the world's biggest interdealer broker, ICAP, $US87 million and laid criminal charges against three former employees over the Libor benchmark rate rigging scandal.

Those charged include New Zealand resident Darrell Read.

The scandal, which has revealed the failings of regulators and bank bosses, has already resulted in three banks being fined billions of dollars and four individuals being charged.

Scores of institutions and traders have been grilled and a spate of lawsuits has been launched.

The US Department of Justice has now charged Mr Read, a former ICAP derivatives broker, along with his supervisor Daniel Wilkinson and cash broker Colin Goodman with conspiracy to commit wire fraud and two counts of wire fraud, Reuters reports.

The charges carry jail sentences of up to 30 years.

At the same time, the US Commodity Futures Trading Commission ordered ICAP's ICAP Europe Ltd unit to pay $US65 million and Britain's Financial Conduct Authority fined the unit £14 million.

US Acting Assistant Attorney General Mythili Raman says the three men are accused of "repeatedly and deliberately spreading false information to banks and investors around the world in order to fraudulently move the market and help their client fleece his counterparties."