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Convicted EURIBOR trader applies to the Criminal Cases Review Commission to have his conviction overturned

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Mr Carlo Palombo has applied to the Criminal Cases Review Commission (CCRC) to have his conviction for conspiracy to defraud referred to the Court of Appeal. The allegations against Mr Palombo were that, as a trader at Barclays Bank plc, he conspired with others to make European Interbank Offered Rate (EURIBOR) submissions to the European Banking Federation which took into account the bank’s commercial interests.

Mr Palombo’s application follows the decision by the CCRC to refer to the Court of Appeal the conviction of Mr Tom Hayes, convicted in 2015 of conspiracy to defraud by the alleged manipulation of the London Inter-Bank Offered Rate (LIBOR). The CCRC concluded that there is a “real possibility that the Court of Appeal will … overturn Mr Hayes’ conviction”.

England and Wales is the only jurisdiction in the world where any individual has been convicted of a criminal offence for EURIBOR or LIBOR manipulation.

In 2022, the United States Court of appeals for the Second Circuit overturned the convictions of two Deutsche Bank AG employees for the making of ‘trader-influenced’ LIBOR submissions. The US Court ruled that the prosecution did not establish that ‘trader-influenced’ LIBOR submissions was “false”.

The CCRC has concluded, in relation to Mr Hayes’ case, that “there is a real possibility that the Court of Appeal will prefer the legal approach to the definition and operation of the LIBOR rules taken by the US Court”.

Mr Palombo is now requesting that the CCRC urgently refer his conviction to the Court of Appeal for the same reason.

Tim Owen KC, Tim James-Matthews and Rosalind Comyn act for Mr Palombo, together with Katherine Hardcastle, instructed by Ben Rose and Tom Bushnell of Hickman & Rose.

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