Former Barclays executives cleared of fraud charges

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Roger Jenkins, Thomas Kalari and Richard Boath (left to right) were acquitted on all charges in under six hours

Three former top Barclays executives have been cleared of fraud charges linked to how the bank raised billions from Qatar in the financial crisis.

The Serious Fraud Office (SFO) had alleged the bank had given Qatar secret fees that helped it to survive without a UK government bailout in 2008.

Roger Jenkins, Tom Kalaris, and Richard Boath were found not guilty on all charges by the jury in under six hours.

Former Barclays chief executive John Varley was acquitted in June 2019.

The acquittal of the three men is a blow to the SFO and draws a line under an ambitious seven-and-a-half-year investigation that led to the first criminal charges in Britain against senior financiers at a major bank over credit crisis-era conduct.

An SFO spokesperson said: “Our prosecution decisions are always based on the evidence that is available, and we are determined to bring perpetrators of serious financial crime to justice.

“Wherever our evidential and public interest tests are met, we will always endeavour to bring this before a court.”

Advisory fees

The three former senior bankers were accused by the SFO of committing a fraud in the midst of the financial crisis – charges they have spent more than a year on trial denying.

In 2008, Barclays, like other banks, was running dangerously low on cash.

Roger Jenkins, Tom Kalaris and Richard Boath, all senior executives but not top bosses of Barclays at the time, helped to arrange a £12bn investment by sovereign wealth funds, including the Gulf state of Qatar.

However, the Qataris demanded more than double the fees paid to other investors.

The SFO said the bank decided to disguise their extra fees – £322m in total – by hiding them in what it said were pretend agreements for advisory services.

The defendants said the agreements were approved at the top of the bank and signed off by its lawyers.

Allegations

Prosecutors had alleged Mr Jenkins, the head of the Middle East investment bank, Mr Kalaris, who ran Barclays’ wealth unit, and former financial institutions head Mr Boath conspired with former finance director Chris Lucas to disguise a £42m payment to Qatar.

The SFO said the bankers used a so-called “advisory services agreement” to mask the fact Barclays was paying Qatar more than twice the fees it was paying other investors that June.

Mr Jenkins, who was described as the “gatekeeper” to the Qatari relationship, was also charged over a £280m, five-year agreement struck with Qatar four months later.

Mr Lucas was not charged because he was too ill to stand trial.

Qatar, a major investor in the UK and still a significant Barclays shareholder, was neither investigated nor accused of wrongdoing.

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