Barclays (BARC) and ex-staff including former chief executive charged by Serious Fraud Office (SFO) with fraud over Qatar fundraising but share price remains flat
The Serious Fraud Office has announced today it has charged four former Barclays bankers, including ex-chief executive John Varley, over a 2008 fundraising from Qatar.
It said this morning that it had charged the bank and four individuals with “conspiracy to commit fraud and the provision of unlawful financial assistance contrary to the Companies Act 1985”.
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Roger Jenkins, the former executive chairman of investment banking and investment management in the Middle East and North Africa, Barclays Capital, was also charged, alongside Thomas Kalaris, the former chief executive of Barclays wealth and investment management, and Richard Boath, who was European head of the financial institutions group.
The defendants will appear before Westminster Magistrates’ Court on 3 July.
The SFO said in a statement: “The charges relate to Barclays Plc’s capital raising arrangements with Qatar Holding LLC and Challenger Universal Ltd, which took place in June and October 2008, and a US$3bn loan facility made available to the state of Qatar acting through the ministry of economy and finance in November 2008.”
The decision comes after a five-year investigation, with the probe focusing on whether commercial agreements between the bank and Qatari investors at the time of the fundraising were against UK law.
Qatar Holding invested in Barclays between June and October 2008, at the height of the financial crisis, when it was seeking extra cash.
The authorities have been investigating payments from the bank to Qatar around the same period.
Barclays said in a statement that it was “considering its position in relation to these developments”.
“The charges arise in the context of Barclays’ capital raisings in June and November 2008. Barclays awaits further details of the charges from the SFO. The SFO has informed Barclays that it has not made a decision as to whether it will also bring charges against Barlcays Bank PLC in respect of the loan,” Barclays said.
Jenkins will “vigorously defend” himself against the charges, his lawyer told Reuters.
“As one might expect in the challenging circumstances of 2008, Mr Jenkins sought and received both internal and external legal advice on each and every topic covered by the SFO’s accusations today,” Brad Kaufman, at Greenberg Traurig, said.
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