Ex-Deutsche Bank trader’s conviction thrown out in Libor-rigging probe

(Reuters) — A U.S. judge on Friday threw out a former Deutsche Bank AG trader’s conviction for conspiring to manipulate the global lending benchmark Libor, after an appeals court tossed the convictions of two former colleagues he testified against.

U.S. District Judge Paul Engelmayer in Manhattan granted Timothy Parietti’s request to void his guilty plea and judgment of conviction, and have the government return his $1 million fine, saying it served the “interests of justice.”

Prosecutors did not oppose the request. Mr. Parietti had also been sentenced to three years of supervised release and has completed that sentence.

The former managing director of Deutsche Bank’s New York money market derivatives trading desk had pleaded guilty in May 2016 to conspiring to commit wire and bank fraud.

Prosecutors said Mr. Parietti manipulated Libor, short for London Interbank Offered Rate, from 2006 to 2008 in order to boost profit on his own trades.

Court papers say Mr. Parietti later provided “substantial” cooperation that helped convict former Deutsche Bank traders Matthew Connolly and Gavin Black in October 2018 for rigging Libor.

 

 



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