SFO seeks to renew charges against Barclays over cash call

BARCLAYS is potentially facing fresh criminal charges over its £11.8bn cash call at the height of the financial crisis, largely bankrolled by Qatar.

The Serious Fraud Office (SFO) has applied to the High Court to reinstate two conspiracy to commit fraud charges against the bank related to the 2008 fundraising, Barclays said in a statement.

The charges had been dismissed by Southwark Crown Court in May. Barclays said at the time that it expected the SFO to look to reinstate the charges.

In a statement Barclays said it “intends to defend the application brought by the SFO”. The SFO confirmed it had made the application and declined to comment further.

The initial dismissal of the charges was seen as a blow to the SFO, which has spent more than five years investigating the alleged fraud.

Legal experts called it a “punch in the gut” for the fraud agency in May. The 2008 cash call had helped Barclays avoid a government bail-out, unlike rivals RBS and Lloyds. But side deals struck between Barclays and Qatar related to the fundraising have been the subject of scrutiny.

The basis of the court’s decision to originally drop the charges against Barclays was not disclosed, with the judge ruling that it should remain private while proceedings were still live. Lawyers commented that the SFO’S move could be seen as a gamble.

Charles Kuhn, partner at Clyde & Co, said: “The SFO is attempting a second bite of the cherry, which could be a high-risk strategy and viewed as a misstep.” Charges against four former directors of Barclays – including John Varley, its former chief executive – for conspiracy to commit fraud related to the fundraising remain live.

Barclays is also facing a separate $1bn (£760m) civil lawsuit over its dealings with Qatar, brought by financier Amanda Staveley’s PCP Capital Partners, which has been stayed pending the outcome of the criminal case.

The bank is also facing regulatory probes by City watchdog the Financial Conduct Authority and US regulators over the fundraising.

Roger Jenkins, the former senior investment banker, Thomas Kalaris, the ex-boss of Barclays’ wealth division, and Richard Boath, the former European head of financial institutions, have also been charged along with Mr Varley for conspiracy to commit fraud by false representation for the June 2008 cash call.

Mr Varley and Mr Jenkins also face separate charges of conspiracy to commit fraud related to a second capital raising in October of that year, as well as a charge of unlawful financial assistance.