Ex-Barclays bankers ‘lied over Qatar payments’: prosecutors
Former senior bankers at Barclays disguised hefty fees made to Qatar in exchange for investments in the British lender during the 2008 global financial crisis, a court heard Tuesday.
Richard Boath, Roger Jenkins and Thomas Kalaris plotted to commit fraud by false representation relating to Barclays capital raising in June 2008, prosecutors alleged at the start of their jury trial at London’s Old Bailey.
Jenkins is accused also of fraud over Barclays capital raising in October 2008.
The trio, all in their 60s, deny the charges.
Prosecutor Edward Brown told the court Tuesday that the amount of fees paid by Barclays, totalling £322 million at the time, “was considerably higher than that paid to other investors for their investment into” the British bank.
Brown said paying more went against established banking practice and would not have been accepted by the other investors.
“The Qatari investment had to be achieved and this meant telling lies,” Brown told the court.
“They acted dishonestly in order to preserve the future of the bank and to preserve their own positions,” he added.
Brown said the bankers made out that they were paying fees also for separate advisory agreements.
To avoid asking the UK government for a taxpayer bailout, Barclays raised nearly £12 billion from investors in the Middle East, including the Qatari state sovereign wealth fund, to help it weather the storm.