In August 2015, former UBS banker Tom Hayes sat in a London courtroom after being found guilty of eight counts of conspiracy to defraud, for his involvement in the Libor interest-rate rigging scandal. That day, he would be sentenced to 14 years in prison, the longest white-collar sentence in British history. Packed in the prison bag he never thought he would need was Amanda Knox’s book Waiting To Be Heard. He read the memoir in segregation, but it wasn’t until his conviction was overturned in July of this year, after he spent five and a half years in some of Britain’s highest security prisons, that the title truly resonated with him. Now, Hayes is seeking justice for himself—against his former employer.
On October 23, Hayes filed a $400 million lawsuit against UBS in Connecticut state court for allegedly wrongly casting him as the “evil mastermind” responsible for Libor rate manipulation to protect senior executives and avoid substantial regulatory sanctions and prosecution. The Swiss bank paid $1.5 billion to settle various U.S., U.K., and Swiss regulatory penalties in 2012 when Hayes was criminally charged. The former banker also filed a duplicate case against UBS in a New York state court.
Prior to Hayes’ incarceration, he was a highly successful trader. According to the civil complaint, he was positioned to earn at least $5-10 million annually for years to come. His finances now, however, have been decimated. Aside from spending more than $1 million on his criminal defense, Hayes’s assets were frozen by prosecutors and he was debanked. Blackballed from the financial industry and fired from non-finance jobs due to negative press reports, Hayes alleges he has been unable to secure even basic employment due to his reputation.
Beyond the monetary losses, Hayes’ legal battles and imprisonment also cost him his marriage and harmed his health. While in prison, Hayes told Fortune, one of his cellmates attempted to kill him and he required protection from fellow inmates to remain safe. During his trial and in prison, he also struggled with depression and intense emotional distress. And, four years ago, Hayes was formally diagnosed with multiple sclerosis, which the complaint alleges was triggered by the stress endured throughout his prosecution and imprisonment.
