Barclays bankers acquitted over fraud charges in Qatar deal

February 28, 2020 - 7:09 am

LONDON (AP) — Three former Barclays bankers have been cleared of fraud over a 4 billion-pound ($5.2 billion) investment deal with Qatar at the height of the global financial crisis in 2008.

The three men — Roger Jenkins, Thomas Kalaris and Richard Boath — were acquitted Friday after a five-month trial at London's Old Bailey.

The case was brought by Britain's Serious Fraud Office, which had accused the American and two Britons of hiding the true nature of the fundraising plan with Qatar from authorities and other shareholders.

At the height of the financial crisis, many banks around the world, most famously Lehman Brothers went bust. Others, including Lloyds and Royal Bank of Scotland, were bailed out by the British government. Barclays was struggling too, but managed to avoid a government bailout through two capital fundraisings, totaling 11.2 billion pounds, with Qatar.

The Serious Fraud Office alleged the lucrative terms given to Qatar, including an extra 322 million pounds in fees, were hidden from the market and other investors through bogus advisory service agreements.

Jenkins, 64, was said to be Barclays' "gatekeeper" of its relationship with the oil-rich Gulf state. Kalaris, also said 64, was chief executive of Barclays' wealth management division while Boath, 61, was a high-ranking member of Barclays Capital.

A fourth man, Christopher Lucas, had been found unfit to face trial due to illness.

The acquittal of the three men is the latest setback for the Serious Fraud Office. It follows the acquittal of John Varley, Barclays' chief executive in 2008, in a previous trial last year after a judge ruled that the agency hadn't come up with enough evidence.

The SFO defended bringing the case against the three men

“Our prosecution decisions are always based on the evidence that is available, and we are determined to bring perpetrators of serious financial crime to justice," a spokesperson said in a statement.

"Wherever our evidential and public interests tests are met, we will always endeavour to bring this before a court.”

AP Editorial Categories: 
Comments ()