SFO charges Barclays over Qatar capital raising case

The Serious Fraud Office has today charged Barclays, along with four of its former executives, with conspiracy to commit fraud relating to capital raising arrangements with Qatar in June and October 2008 at the height of the financial crisis.

The charges, which have been brought against the bank as well as former chief executive John Varley, former senior investment banker Roger Jenkins, Thomas Kalaris, a former chief executive of Barclays’ wealth division, and Richard Boath, the ex-European head of financial institutions, also include the provision of unlawful financial assistance contrary to the Companies Act 1985.

The dealings in question relate to £7 billion raised by Barclays as it attempted to avert the need for a government bailout as was required by Royal Bank of Scotland and Lloyds as the global financial system ground to a halt in the summer of 2008.



Barclay’s arrangements included a US$3 billion loan facility made available to the State of Qatar acting through the Ministry of Economy and Finance in November 2008, which the SFO now says may have been criminal.

The SFO has brought the following charges:

  • Conspiracy to commit fraud by false representation in relation to the June 2008 capital raising, contrary to s1 and s2 of the Fraud Act 2006 and s1(1) of the Criminal Law Act 1977 – Barclays Plc, John Varley, Roger Jenkins, Thomas Kalaris and Richard Boath.
  • Conspiracy to commit fraud by false representation in relation to the October 2008 capital raising, contrary to s1 and s2 of the Fraud Act 2006 and s1(1) of the Criminal Law Act 1977 – Barclays Plc, John Varley and Roger Jenkins.
  • Unlawful financial assistance contrary to s151 of the Companies Act 1985 – Barclays Plc, John Varley and Roger Jenkins.
  • The defendants will appear before Westminster Magistrates’ Court at 14.00 on 3 July 2017 in what will be first time criminal charges related to the financial crisis have been brought against a bank in the UK.

    Barclays said it is considering its position and awaiting further details.

    “The charges arise in the context of Barclays’ capital raisings in June and November 2008. Barclays awaits further details of the charges from the SFO,” the bank said in a statement.

    Mr Jenkins will “vigorously defend” himself against the charges, his lawyer has told Reuters.

    “As one might expect in the challenging circumstances of 2008, Mr Jenkins sought and received both internal and external legal advice on each and every topic covered by the SFO’s accusations,” said Brad Kaufman from American law firm Greenberg Traurig.

    Mr Boath, who last year took Barclays to an employment tribunal on the grounds of wrongful dismissal. also pledged to defend himself.

    He said in a statement: “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.”

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