Photo via Business Standard
A former Barclays trader who was put in prison for his role in the rigging of the Libor bank rate is required to pay nearly £300,000 in earnings that are deemed to be proceeds from the crime.
Jay Merchant is currently serving a five-and-a-half-year sentence in prison after being found guilty in July 2016. According to a confiscation order that was handed down by a London court today, he is required to pay £275,890 in profits together with a £21,961 legal bill.
Merchant is required pay the said amount this month or have another five years added on to his sentence.
Merchant was one of the four former Barclays employees that were put in prison as part of the British investigation over the manipulation of the London Interbank Offered Rate (Libor) that was previously utilised by banks and businesses across the globe in order to determine a so-called risk-free rate for borrowing.
Jonathan Mathew, Alex Pabon, and Peter Johnson were also found to be guilty of manipulating the rate for over two years up to September 2007. Merchant is the most senior of the four. He received the longest sentence, and he also was ordered to repay the highest amount.
The said order was confirmed by the Serious Fraud Office and was first reported by Bloomberg.