NEW YORK, Nov 18 (Reuters) – Deutsche Financial institution AG has been sued for $150 million by a former dealer whose conviction for rigging the Libor price benchmark was overturned, and who says the financial institution framed him to protect prime executives from blame.
In a grievance filed on Thursday in New York, Matthew Connolly accused the financial institution of “malicious prosecution” for making materially false statements to the U.S. Division of Justice, and directing an worker to perjure himself at trial.
Connolly stated the German lender seen him because the “excellent fall man” although he had “nearly nothing to do” with Libor, to insulate executives who directed its Libor manipulation.
Deutsche Financial institution’s scapegoating ruined the status and profession of Connolly, a married father of two, and triggered the “destruction of his life,” the grievance stated.
The financial institution stated in an announcement: “We’ll vigorously defend ourselves towards these claims.”
Libor is brief for London interbank supplied price.
Earlier than being phased out in January, it underpinned a whole bunch of trillions of {dollars} of economic merchandise together with bank cards, mortgages and different loans.
Investigations worldwide into Libor manipulation resulted in about $9 billion of fines for banks, together with $2.5 billion for Deutsche Financial institution in 2015.
Connolly had led Deutsche Financial institution’s pool buying and selling desk in New York earlier than leaving in 2008.
He and London-based colleague Gavin Black have been indicted in 2016 and convicted in 2018 for rigging Libor, with Connolly sentenced to 6 months of residence confinement and a $100,000 effective.
A U.S. appeals courtroom overturned their convictions in January, nevertheless, citing a scarcity of proof they have been responsible.
Connolly sued Deutsche Financial institution 4 weeks after a New York decide tossed a Libor-rigging indictment towards former UBS (UBSG.S) and Citigroup (C.N) dealer Tom Hayes and one other dealer.
Prosecutors stated the overturning of Connolly and Black’s convictions undermined these instances. Hayes had already served greater than 5 years in jail in Britain for rigging Libor.
Citigroup faces a separate $112 million lawsuit in New York the place former dealer Rohan Ramchandani accuses it of scapegoating him in a U.S. prison probe into rigging international trade.
The case is Connolly v. Deutsche Financial institution AG, U.S. District Courtroom, Southern District of New York, No. 22-09811.
Reporting by Jonathan Stempel in New York
Modifying by Matthew Lewis
: .