Barclays bankers cleared of fraud in £4bn crisis deal
THREE former Barclays bosses have been cleared of fraud over a £4bn investment deal with Qatar at the height of the banking crisis.
Scotsman Roger Jenkins, 64, was said to be Barclays’ “gatekeeper” to the wealthy Middle Eastern state, and in 2008 helped the bank with two large capital raisings to avoid a government bailout.
In June, Barclays secured £4.4 billion, with £1.9bn invested by Qatar, followed by a second tranche in the autumn of £6.8bn, of which £2.05bn was from Qatar.
The Serious Fraud Office (SFO) alleged the lucrative terms given to Qatar, including an extra £322m in fees, were hidden from the market and other investors through bogus advisory service agreements (ASAs).
But multi-millionaire Jenkins, who was linked to supermodel Elle MacPherson, was yesterday acquitted of fraud, along with former colleagues Thomas Kalaris, 64, and Richard Boath, 61, at the Old Bailey.
At the time of the alleged fraud each of the defendants held very senior positions at Barclays, jurors heard.
Mr Jenkins was Barclays Capital executive chairman of investment banking and investment management in the Middle East and North Africa; Mr Kalaris was Barclays’ wealth management CEO, and Mr Boath was Barclays Capital head of financial institutions group for Europe, Middle East and Africa.
Prosecutor Ed Brown QC told jurors: “They acted dishonestly in order to preserve the future of the bank and to preserve their own positions.”
The defendants denied wrongdoing, with Bill Boyce QC, for Mr Boath, describing the allegation as “preposterous”.
Mr Boyce told jurors: “The SFO have to prove that Roger Jenkins and Sheikh Hamad agreed a sham contract... this despite the fact that it was obvious to both sides that a longterm strategic relationship was in both their interests.”
Mr Jenkins, of Malibu, California, Mr Kalaris, of Thurloe Square, west London, and Mr Boath, of Henley-on-Thames, were acquitted of conspiracy to commit fraud by false representation and fraud by false representation between May 1, 2008, and August 31, 2008.
Mr Jenkins was also acquitted of two similar offences dated between September 1, 2008, and November 30, 2008.
Jurors were told that a fourth man, Christopher Lucas, had been found unfit to face trial due to illness.
The three bankers had originally been charged with conspiracy to commit fraud alongside former Barclays chief executive John Varley. However in April last year a judge dismissed the charges against him.