Three further bans for Libor manipulation/ Bribery Act 2010 sentencing of Sweett Group Plc
By Kathleen Harris Stuart Baker Michael J Atkinson James McSweeney – Arnold & Porter LLP
From International Law Office (ILO)
Three further bans for Libor manipulation
On March 2 2016 the Financial Conduct Authority (FCA) announced that it had prohibited Mr Michael Curtler, a former trader at Deutsche Bank, from working in the UK financial services industry for lacking honesty and integrity. This followed a criminal conviction in the United States for his role in a conspiracy to manipulate Deutsche Bank’s US dollar London Interbank Offered Rate (Libor) submissions.
Similarly, on April 12 2016 the FCA announced that it had banned Mr Paul White, a former RBS Libor submitter, from conducting any regulated financial activity. The FCA also issued a public censure and stated that White would have received a £250,000 fine were it not for his serious financial hardship. This related to his conduct when submitting Japanese yen and Swiss franc prices to the British Bankers Association for input into the Libor prices.
Subsequently, on April 14 2016 the FCA also prohibited Mr Arif Hussein, a former trader at UBS in London, from any role in regulated financial services. The FCA’s decision was based on Hussein’s role in influencing UBS’s Libor submitters by informing them of his preference for certain pound sterling rates, which were beneficial to his trading positions. Hussein disputes the FCA’s decision and the matter has been referred to the Upper Tribunal. While a decision is pending in the Upper Tribunal, the prohibition on Hussein will not be effective.
These bans follow the earlier bans for Libor manipulation of Mr Paul Robson in February 2015 and Mr Lee Stewart in July 2015, both previously employed by Rabobank.
For further information on this topic please contact Kathleen Harris, Stuart Baker, Michael J Atkinson or James McSweeney at Arnold & Porter LLP by telephone (+44 20 7786 6100) or email ([email protected], [email protected], [email protected], or [email protected]). The Arnold & Porter website can be accessed at www.arnoldporter.com.
http://www.internationallawoffice.com/Newsletters/White-Collar-Crime/United-Kingdom/Arnold-Porter-UK-LLP/Three-further-bans-for-Libor-manipulation?utm
Bribery Act 2010 sentencing of Sweett Group Plc
Following its guilty plea on December 18 2015, Sweett Group Plc was sentenced on February 19 2016 at Southwark Crown Court and ordered to pay £2.25 million. As reported in “Section 7 of Bribery Act in spotlight”, this was the first guilty plea to a Bribery Act 2010 Section 7 offence.
Sweett Group Plc admitted failing to prevent an act of bribery intended to secure and retain a contract, contrary to Section 7(1)(b) of the Bribery Act. The Serious Fraud Office’s investigation identified that Sweett Group Plc’s subsidiary, Cyril Sweett International Limited, had made corrupt payments to an individual to secure and retain a contract with an insurance company for project management and cost consulting services in relation to the construction of a hotel in Abu Dhabi. The Serious Fraud Office is still investigating individuals in relation to the bribery of Mr Al Badie.
The landmark judgment was passed by Justice Beddoe in accordance with Section 125(1) of the Coroners and Justice Act 2009 and the sentencing guidelines set out by the Sentencing Council on October 1 2014. The total penalty of £2.25 million is broken down to £1.4 million in fines, £851,152 in confiscation, plus £95,000 in costs to the Serious Fraud Office.
For further information on this topic please contact Kathleen Harris, Stuart Baker, Michael J Atkinson or James McSweeney at Arnold & Porter LLP by telephone (+44 20 7786 6100) or email ([email protected], [email protected], [email protected], or [email protected]). The Arnold & Porter website can be accessed at www.arnoldporter.com.
NOTE: ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription.
