Tom Hayes, a former British trader, has initiated a $400 million lawsuit against UBS, claiming “malicious prosecution and corporate scapegoating.” This legal action was filed in Connecticut Superior Court and is rooted in the LIBOR interest rate scandal.
According to the lawsuit, Hayes accuses UBS of framing him as the chief orchestrator of the scandal to shield higher-ups from scrutiny and to minimize substantial regulatory penalties. He alleges that the bank “deliberately destroyed” his life by providing misleading information to prosecutors in both the UK and the US to fabricate a case against him.
The complaint argues that by transforming Hayes into the “ideal scapegoat,” UBS was able to circumvent criminal charges despite settling for $1.5 billion in fines across the U.S., U.K., and Switzerland. Hayes had been charged criminally back in December 2012.
In a statement regarding the lawsuit, Hayes expressed frustration over the decade-long struggle to clear his name. He emphasized that UBS had manipulated the situation to detract attention from its executives, declaring, “it took more than a decade to defeat my claims.” Hayes’ legal team aims to hold UBS accountable, asserting he was wrongfully convicted.
Details from the lawsuit reveal that it targets the flawed internal investigation led by UBS, which Hayes argues caused significant reputational, professional, and personal damage. Arrested in 2012 during this investigation, Hayes maintained that his actions were under the purview of management oversight.
Despite being sentenced to 11 years in prison, he served just over five years before his release in 2021, and subsequent U.S. charges were dropped. The LIBOR scandal, which spanned a series of years, resulted in nearly $10 billion in penalties for various global banks.
Hayes’ attorney has described him as an innocent man, emphasizing the impact of the prosecution on his life and career. UBS has chosen not to comment on the matter.
