The US Govt is challenging a District Court’s judgment against former Deutsche Bank traders Matthew Connolly and Gavin Black. The court had convicted the traders in the LIBOR rigging scandal but didn’t assign prison sentences.
Seeking harsher penalties
A few weeks ago, the New York Southern District Court convicted Connolly and Black for their roles in the LIBOR rigging case but only assigned them financial penalties. Black was handed three years of supervised release with a financial penalty of $300,000. Connolly has to serve two years of supervised release and pay a $100,000 fine. Now the US Govt is appealing the case, seeking a prison sentence for the traders. The Govt filed a petition for an appeal for the judgment by Judge Colleen McMahon.
The Department of Justice said that Connolly hasn’t been served with an appropriate sentence and sought a harsher penalty. It said that he worked along with several Deutsche Bank co-conspirators to manipulator LIBOR rates and benefit their positions. It noted that Connolly worked “with callous and knowing disregard for the far-reaching effects of their actions”.
What does the US Govt want?
The Govt said that Connolly exploited his authority as the supervisor of the New York trading desk of Deutsche Bank. He ordered Timothy Parietti, his subordinate to email the positions taken by the desk to submitters based in London. This data helped them manipulate LIBOR’s rate in favor of New York. It said that Connolly is defiant of his actions and doesn’t accept responsibility or show any remorse.
He also wrote a book titled ‘Target: A Scapegoat’s Guide to the Federal Justice System’ in which he used several profanities for Parietti and the prosecution. He called Parietti a “clown” and a “coward” and labeled the prosecution as “the best scumbags in the world.”
The govt wants a level 34 incarceration for him, which calls for anywhere between 151 to 188 months of imprisonment and a maximum fine of $3 million. They also suggest a level 31 incarceration for Black. This could bring a mine of a maximum of $2 million alongside a 108 to 135 months’ imprisonment.
The defendants are also not satisfied with the judgment and appeal in court. This would add another case to the group of LIBOR manipulation-related lawsuits filed on both sides of the Atlantic. Banks have paid billions of dollars in fine for their involvement in the scam.