anything to avoid opening the books !!!

Barclays are charged with fraud and unlawfully helping Qatar

Barclays and four former senior executives have been charged by prosecutors with conspiracy to commit fraud and providing unlawful assistance to Qatar.

The charges relate to deals to raise capital at the height of the financial crisis that helped the bank avoid a taxpayer-funded bailout.

John Varley, the bank’s former chief executive, Roger Jenkins, the former head of Barclays’ Middle East business, Tom Kalaris, the former head of wealth management, and Richard Boath, the former head of bank’s financial institutions group, were this morning charged with conspiracy to commit fraud by false representation relating to a deal in June 2008.

The Serious Fraud Office also took the unprecedented step of charging the bank itself over the making of a $3 billion loan to Qatar in 2008 that is alleged to have seen the lender breach rules about the provision of unlawful finance.

In addition to the conspiracy charges related to a June 2008 capital raising, Mr Varley and Mr Jenkins are also charged with conspiracy to commit fraud over a separate October 2008 deal, as well as providing unlawful financial assistance.

The charges mark the culmination of a five-year investigation by the SFO and the first time that senior executives of a major British bank have faced criminal prosecution in the modern era.

Mr Varley, Mr Jenkins, Mr Kalaris and Mr Boath will have their first chance to enter pleas when they appear at Westminster magistrates’ court on July 3.

In a statement to the stock market Barclays confirmed that it had been charged with two offences of “conspiring with certain former senior officers and employees of Barclays to commit fraud by false representation relating to two advisory services agreements entered into with Qatar Holding LLC”. The bank added that it had also been charged with providing unlawful financial assistance in November 2008.

“Barclays is considering its position in relation to these developments,” the bank said.

As well as the SFO’s charges, the Financial Conduct Authority and US Department of Justice have also been investigating advisory services agreements Barclays signed with Qatar that totalled more than £300 million.

In addition, Barclays is fighting a civil claim brought by Amanda Staveley, the businesswoman who helped to arrange Abu Dhabi’s involvement in the bank’s 2008 capital raisings.

Mr Boath had launched his own employment tribunal claim against Barclays over bonuses he said the bank had failed to pay him. That claim was to have been heard last year but was postponed after the SFO and Barclays said that it would prejudice the wider Qatari investigation.

Sarah Wallace, a partner at law firm Irwin Mitchell, said: “This is the most significant charging decision for the SFO in recent times, if not ever.

“In the last few years, Barclays faced an unprecedented number of investigations by worldwide regulators but this SFO criminal prosecution is the most serious.

“In taking on Barclays, one of the largest banks in the world, and its most senior officials who literally were at the very top, [this] sends a very strong message that the SFO is now fearless in terms of the companies and individuals it pursues.”