By Eric King=
The serious Fraud office has charged Barclays and four former directors with conspiracy to commit fraud by false representation in the lender’s dealings with Quatari investors a £12bn emergency fund raising undertaken by the bank to avoid a government bail out during the 2008 financial crises.
Mr.Varley, Mr.Jenkins, former head of the wealth division, Thomas Kalarisand former global had of finance, Richard Boath, have all been charged with conspiracy to commit fraud during their dealings with Quatari investors who were behind a £4.5bn cash call that year.
It is rhe forst time that charges have been brought against any bank or executives over the banking system collapse in 2008. In a statement, the SFO said:
“The charges relate to Barclays Plc’s capital raising arrangements with Qatar Holding LLC and Challenger Universal Ltd, which took place in June and October 2008, and a $3bn loan facility made available to the State of Qatar acting through the Ministry of Economy and Finance in November 2008,” the SFO said.
Challenger Universal was the investment vehicle of Sheikh Hamad bin Jassim bin Jabr al-Thani, the former Qatari prime minister.
“Barclays is considering its position in relation to these developments,” the bank said.
The Serious Fraud Organisation focused its investigation around a £3bn loan and a £322m huge sum made by Barclays to Quatari investors under the pretext of advisory agreement services.
The hefty loan has been deemed unlawful because of the failure of the bank to disclose the underhand financial move. Varley and Jenkins face charges over a £7.3bn fundraising undertaken in October , 2008. After a five year investigation, the Serious Fraud Investigation concluded that the massive loans and investments were made to prevent Barclays bank being rescued by tax payers money, sending the financial system into chaos that year.
Barclays had been defiant against warnings from the Financial Conduct Authority that they would face charges over the affair- a fate that has finally arrived. The case will be held at Westminster’s Magistrates Court next month in what is set to be a dramatic case with potential serious consequences for the accused. The theoretical position for Barclays bank until the case is heard is innocent until proven guilty.
In a case of this magnitude, both sides will bring in their best lawyers to fight the case, but it must be said that the Serious Fraud Organisation would have considered the charges very carefully before bringing them. They would have top lawyers on side from the very beginning, but it remains an allegation until the case is actually continued. In the meantime, the accused will have this charge hanging over their heads and will have to pull out an extremely good argument missed by the Serious Fraud Organisation to get out of this one.