US appeals court tosses convictions of British ex-bankers

The Justice Department in Washington, which prosecuted the men, declined to comment.

“Today’s decision is a tremendous relief for Tony Allen and his family, who now look forward to putting this stressful chapter of their lives behind them,” said defence attorney Michael Schachter.

“We’re thrilled and the client’s thrilled,” said Tor Ekeland, a lawyer for Anthony Conti. “This is a really great vindication of our client’s constitutional rights.”

They were convicted in part on the testimony of Paul Robson, who also worked in the London office of Dutch bank Rabobank before pleading guilty to U.S. charges and co-operating.

The 2nd Circuit noted the United Kingdom enforcement agency, the Financial Conduct Authority, forced Allen and Conti — both U.K. citizens and residents — to answer questions.

Robson then reviewed the testimony, taking several pages of handwritten notes, after the Financial Conduct Authority initiated and later dropped an enforcement proceeding against him, the appeals court said.

Allen was sentenced to two years and Conti received one year in prison after their 2015 convictions on charges that they tried to manipulate the London interbank offered rate, known as LIBOR. U.S. District Judge Jed Rakoff in Manhattan permitted them to remain free pending appeal.

Banks use LIBOR to borrow from one another. It affects trillions of dollars in contracts around the world, including mortgages, bonds and consumer loans.

The 2nd Circuit said Allen had joined Rabobank in 1998 and was the bank’s LIBOR rate submitter until 2005 while Conti was the primary LIBOR rate submitter from 2005 through 2009.

The appeals court said U.S. government investigators were aware they needed to closely co-ordinate with U.K. authorities.

“The practical outcome of our holding today is that the risk of error in co-ordination falls on the U.S. government (should it seek to prosecute foreign individuals), rather than on the subjects and targets of cross-border investigations,” it said.

Larry Neumeister, The Associated Press

by Canadian Press

US appeals court tosses convictions of British ex-bankers

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