Serious Fraud Office responds to judgment

The Serious Fraud Office (SFO) plays a critical role in investigating and prosecuting complex cases of fraud, bribery, and corruption that jeopardise the UK's economic integrity. Recently, a Supreme Court decision, which arrived thirteen years after the investigation into misleading practices by traders at banks concerning key interest rates, has prompted the SFO to respond rigorously. The rates in question, the London Inter-bank Offered Rate (LIBOR) and the Euro Inter-bank Offered Rate (EURIBOR), have significantly influenced the value of financial products, impacting ordinary people's pensions, mortgages, and savings worldwide. The SFO's inquiries led to the conviction of nine senior bankers on fraud charges, but the recent ruling has rendered the convictions of Tom Hayes and Carlo Palombo unsafe due to incorrect jury directions.

Following the Supreme Court's determination, the SFO has carefully evaluated whether the judgement's implications extend to other individuals formerly convicted in related cases. The office disclosed that, out of six cases examined, it identified five individuals—Jonathan Mathew, Jay Merchant, Alex Pabon, Philippe Moryoussef, and Colin Bermingham—who may also have had their convictions put at risk by the same legal errors that influenced Hayes and Palombo. For one individual, Peter Johnson, the SFO deemed his conviction, based on a guilty plea, to remain intact.

Jason Williams, Head of Division at the SFO, stated the necessity for the office to inform past defendants of any developments that could impact their convictions. He remarked, “The Supreme Court found the jury, if properly directed, had ample evidence to convict Hayes and Palombo and left it open to us to seek permission for a retrial. We’ve decided this wouldn’t be in the public interest due to various factors including that the defendants have already served prison sentences.” As a result, these defendants must now consider whether they wish to take their cases to the Criminal Cases Review Commission or the Court of Appeal.

In further developments, as of 6 October 2026, the Court of Appeal has overturned the convictions of the five individuals mentioned, aligning with the rationale of the Supreme Court’s prior ruling. Williams reiterated the findings of ample evidence available for a properly directed jury to have convicted Hayes and Palombo, yet confirmed the office's stance against pursuing retrials. The SFO remains steadfast in its commitment to tackling the most serious forms of economic crime in the UK, ensuring that justice is served while weighing the public interest.