Barclays former CEO to appear in court over fraud charges

LONDON - 3 July 2017: Barclays former CEO John Varley and three top bankers will appear in a London court for the first time on Monday to face allegations they conspired to commit fraud over a 2008 bank capital raising with Qatari investors at the height of the financial crisis, The Independent reported.

Former chief executive John Varley, former chairman of investment banking for the Middle East Roger Jenkins, ex-wealth chief Thomas Kalaris and Richard Boath, former European head of the bank’s financial institutions group, will appear alongside the bank, at Westminster Magistrates’ Court.

The hearing, which will discuss bail terms and future court dates, is the first time the group will be seen in public together since the charges were filed in June.

The men are the most senior UK banking executives to face criminal action since the financial crisis, which sent banks scrambling to raise funds to cover billions in losses. The Serious Fraud Office case relates to £322m in fees Barclays paid the Qatar Investment Authority and a $3bn loan facility it made available to the nation as part of side deals to the £12bn fundraising from the Qataris and others.

The bank, Varley, and Jenkins each face three counts of conspiracy to commit fraud by false representation and unlawful financial assistance between May and November 2008 in relation to the British lender’s June and October fundraisings. Mr Boath and Mr Kalaris, who is American, each face one fraud count between May and August over the June capital raising, according to the court listing.

All except Jenkins, who is based in Malibu, live in the UK. Bail terms are assessed on factors including flight risk, consideration of residency and means, which can lead to six or seven-figure securities being posted in these types of cases. A London judge released former Deutsche Bank employee Christian Bittar, who lives in Singapore and is charged with rigging a key interest-rate benchmark, on £1m bail last year.

The Barclays case should be sent to a higher criminal court following bail arrangements.