Barclays and bankers facing fraud charges
● Ex-boss John Varley one of those in the dock ● Focus on Qatari fundraising in financial crash
Barclays and four of its former top bankers, including ex-boss John Varley, have been charged with fraud over side-deals struck during the bank’s emergency fundraising at the height of the financial crisis.
The Serious Fraud Office said it had brought charges of conspiracy to commit fraud against the bank as well as against ex-chief executive Mr Varley, Roger Jenkins, Thomas Kalaris and Richard Boath after a five-year investigation.
It marks the first criminal charges to be brought in the UK against a bank for activities during the financial crisis.
Barclays and four of its former top bankers, including exchief executive John Varley, have been charged with fraud over the bank’s emergency fundraising from Qatari investors during the financial crash.
The Serious Fraud Office (SFO) said it had brought charges of conspiracy to commit fraud against the bank itself as well as Varley, Roger Jenkins, Thomas Kalaris and Richard Boath after a fiveyear probe into the events surrounding the capital-raising in 2008.
The latter enabled Barclays to avoid the UK taxpayer bailouts that propped up Royal Bank of Scotland and Lloyds as the sector went into meltdown.
Barclays said: “The SFO has today charged Barclays with two offences of conspiring with certain former senior officers and employees of Barclays to commit fraud by false representations relating to two advisory services agreements entered into with Qatar Holdingllcinjuneandoctober 2008.”
The bank said it had also been charged with one offence of “unlawful financial assistance” in relation to a $3 billion loan provided to the State of Qatar in November 2008.
Yesterday’ssfoactionmarks the first criminal charges to be brought in the UK against a bank and its former executives for activities during the financial crisis.
Qatari investors – the state-backed Qatar Holding and Challenger Universal – pumped £6 billion into Barclays in June and October 2008.
Barclays said yesterday that it was “considering its position”. The defendants will appear at Westminster Magistrates’ Court on 3 July.
Varley, who was chief executive between 2004 and 2011, headed the bank at the time of the fundraising, while Jenkins is also said to have played a key role in finalising the fundraisings.
The Financial Conduct Authority fined the bank £50 million in 2013 after finding it had failed to disclose arrangements and fees it paid to the Qatari investors. Barclays contested the fine and the challenge was put on hold while the SFO conducted its probe, but that stay has been lifted.
Jenkins’ lawyer, Brad Kaufman, said his client “intends to vigorously defend himself against these charges. As one might expect in the challenging circumstances of 2008, Mr Jenkins sought and received both internal and external legal advice on all of the matters covered by the accusations levelled today by the SFO.” Kirkintilloch-based communications company Exchange Communications has entered a partnership with City of Glasgow College to deliver specialist training to computer networking students. The company’s MD Tom Sime, second from left, said: “We are pleased to have made this match.” Also pictured is the college’s corporate development and innovation director Roy Gardner, second from right, along with students Laura Bulloch and Daniel Kearney.