Former Barclays bosses charged with fraud

The Serious Fraud Office (SFO) today (June 20) charged Barclays in relation to capital raising arrangements made in 2008.

The agreements were made with private equity firm Qatar Holding and Challenger Universal, the investment vehicle of Qatar’s prime minister at the time, Sheikh Hamad bin Jassim bin Jabr al-Thani.

Investigations into the agreements have been carried out by the SFO, the United States Department of Justice, the Financial Conduct Authority (FCA) and the Securities Exchange Commissions (SEC) since 2012.

The former employees have been charged with conspiracy to commit fraud by false representation in relation to capital raising in June and October 2008.

They have also been charged with unlawful financial assistance in relation to a $3bn loan facility made available to the State of Qatar through the Ministry of Economy and Finance in November 2008.

The FCA said it’s pleased this case is now in the public domain and that it welcomes a fair and transparent hearing based on the charges.

Barclays said it is considering its position in relation to these developments whilst awaiting further details of the charges.

The bank also said it has been informed, by the SFO, that a decision has not yet been made in regards to whether the bank will be charged in respect of the loan.

A civil claim has also been served to Barclays by PCP Capital Partners and PCP International Finance in relation to the November 2008 capital raising, which Barclays is defending.

The former employees involved are:

• John Varley, aged 61, based in London, a former chief executive of Barclays;
• Roger Jenkins, aged 61, based in California, a former executive chairman of investment banking and management at Barclays Capital;
• Thomas Kalaris, aged 61, based in London, a former chief executive of Barclays wealth and investment management;
• Richard Boath, aged 58, based in London, a former European head of financial institutions group at Barclays.

The defendants will appear before Westminster Magistrates’ Court on July 3 this year.