Tom Hayes (born October 1979[1]) is a former trader for UBS and Citigroup who was convicted for conspiracy to defraud and sentenced to 14 years in prison (reduced to 11 years on appeal) for conspiring with others to dishonestly manipulate the London Interbank Offered Rate (Libor)[2] as part of the Libor scandal.
In 2001, after time as an intern at UBS, he joined Royal Bank of Scotland's trainee programme, at the interest rate derivatives desk.
The daily reporting of Libor rates by bankers around the world determined his success or failure in generating profits for his bank and bonuses for himself.
In its letter dismissing the 35-year-old former trader, the bank wrote: "Citigroup has uncovered that you attempted to manipulate the Yen Libor and [the Tokyo equivalent] Tibor rates in order to benefit your trading position", which it said was a clear breach of its code of conduct, "resulting in the possibility of serious regulatory actions".
In order to avoid extradition to and subsequent trial by and imprisonment in the U.S., Hayes initially cooperated with the Serious Fraud Office, providing eighty hours of interviews so as to be charged by the United Kingdom.
The defence attempted to illustrate that manipulation of Libor was both widespread and expected as part of Hayes' job description, with senior management aware of the tactic.
[15] The judge, Jeremy Cooke, indicated he wished to "send a signal" to traders involved in illegal trading, as the sentence was significantly harsher than those given to other individuals convicted of financial crimes, such as Nick Leeson.
[15] Hayes maintained his innocence through the trial process,[16] notwithstanding having stated during SFO interviews, "Well look, I mean, it's a dishonest scheme, isn't it?
[25] Interviewed in "The Times" Hayes spoke of the struggles with his mental health and how becoming a Christian and the ministry of the church had helped him to survive.
They divorced in September 2019 during his imprisonment, although the couple remain on good terms and Tighe has campaigned for Hayes' conviction to be overturned.