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SFO charges Barclays over Qatar capital raising case

Chris Hamblin, Editor, London, 21 June 2017

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The former chief executive of Barclays Wealth and Investment Management (a division of Barclays Plc) is among the people the UK's Serious Fraud Office has charged with conspiracy to commit fraud and the provision of unlawful financial assistance contrary to the Companies Act 1985.

As Barclays was struggling to avoid nationalisation by HM Treasury at the height of the financial crisis of 2008, it allegedly broke the law when raising capital by making arrangements with Qatar Holding LLC and Challenger Universal Ltd in June and October 2008. It also allegedly transgressed when raising a US$3 billion loan facility made available to the State of Qatar acting through the Ministry of Economy and Finance in November 2008.

Thomas Llewellyn Kalaris, 61, is the former CEO of Barclays Wealth and Investment Management. He is an American living in London. The SFO has charged him with conspiracy to commit fraud by false representation in relation to the raising of capital in June 2008 in breach of ss1 and 2 Fraud Act 2006 and s1(1) Criminal Law Act 1977, along with John Varley, 61, a former CEO of Barclays plc, Richard William Boath, 58, the former European Head of Financial Institutions Group, and Roger Allan Jenkins, 61, the former executive chairman of investment banking for Barclays Capital EMEA.

Varley and Jenkins are also charged with conspiracy to commit fraud by false representation in relation to the raising of capital in October 2008 contrary to ss1 and 2 Fraud Act and s1(1) Criminal Law Act and with unlawful financial assistance contrary to s151 Companies Act.

Barclays saved itself from the fate of Lloyds Bank and the Royal Bank of Scotland by raising £4½ billion from Qatar in June and £7⅓ billion from Qatar and Abu Dhabi in October, a month after the collapse of Lehman Brothers.

The defendants will appear at Westminster Magistrates’ Court at 14.00 on 3rd July. The UK's Financial Conduct Authority, whose regulatory predecessor dithered for four years before opening a probe in 2012, has commented: "We are pleased that this matter, which led to the stay of our own case, is now in the public domain. We welcome a fair and transparent hearing on the basis of the charges set out today by the SFO. We work closely with the SFO across a range of matters, in pursuit of our distinct objectives."

 

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