Tom Hayes, former trader from UBS Group AG and Citigroup Inc., was the first ever person to stand trial for manipulating Libor. After a nine-week trial, Hayes was found guilty of conspiracy of manipulating the benchmark rate and was sentenced to 14 years in prison, Philly.com reported.
The deliberation for the Libor scandal went on for a week until the jurors unanimously decided that Hayes conspired with traders and brokers to influence the London interbank. He then offered rates for his position's benefit.
The trial went on for nine weeks until the verdict was released by Judge Jeremy Cook In London, Monday, at Southwark Crown Court.
"Probity and honesty are essential, as is trust. The Libor activities of which you took part in put that in jeopardy," the Judge said to Hayes.
"A message needs to be sent to the world of banking," he added.
LIBOR or ICE LIBOR is a benchmark rate that is used by some of the world's leading banks to charge each other for short-term loans. The Intercontinental Exchange London Interbank Offered Rate is the first step in calculating interest rates on several loans worldwide.
There were 25 global traders and brokers from at least 10 firms that tried to rig Libor, and Hayes was said to be the "ringleader." He would bribe, bully or reward his contacts for helping him alter the benchmark.
That benchmark was used to price financial contracts from credit cards to student loans and mortgages worth $350 trillion.
Hayes, on the other hand, told the court that he never thought he had been dishonest, according to Reuters. He also said that his bosses accepted the methods, which at that time were a common a practice.
Neil Hawkes, his lawyer, said that there were others above him who are aware of this scheme. Hayes added that he was singled out to take the fall.
UBS, where Hayes worked from August 2006 to December 2009, said that the company was not a party to the case, while Citigroup, where he worked from December 2009 to September 2010, said that he was terminated following an internal investigation of his methods, a business report from IOL stated.
Citigroup, at the time, reported this matter to the appropriate authorities.
Hayes has been the public face of global Libor scandal since he was first charged in 2012.
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