Barclays and its former are facing legal charges in connection with an illegal deal with investors from Qatar.
The bank and its former officials were charged with fraud on Tuesday in a case revolving around hidden payments made to Qatari investors as part of a $15 billion fundraising that took place during the 2008 financial crisis. The charges were imposed upon the company and its former executives by the Serious Fraud Office (SFO) in Britain. Some of the company’s former officials that were involved include Richard Boath, Tom Kalaris, Roger Jenkins, and former CEO John Varley.
“The SFO’s decision to charge me is based on a false understanding of my role and the facts. I was not a decision-maker and had no control over what the bank did in 2008. The evidence I have supplied is very clear: there is no case for me to answer,” stated Boath, the former chairman of the investment division of the bank in the Middle East.
Inquiries about the case have been going on for five years
British authorities have been looking into the matter for roughly five years. The bank stated that it was dealing with the matter and also waiting for more information regarding the charges. The SFO charged the former Barclays executives after carrying out an investigation that also involves a $3 billion loan to Qatar. The authorities have been trying to establish whether the payments that the bank made to Qatar were properly disclosed.
The SFO charged Kalaris and Boath with conspiracy to commit fraud by false representation during the capital raising. Despite filing the case against Barclays and its former executives, the UK investigator did not find Qatar guilty of any wrongdoing. However, things are quite the opposite for the bank which has now found itself in a huge legal conundrum. Barclays’ current chief executive Jes Staley is also being investigated for trying to unmask an internal informer. The bank is currently working towards recovering and reviving its business from the scandal.
Barclays stock closed the latest trading session on Tuesday at $10.18 after tanking by 3.32 percent compared to the value of the stock during the previous close.