Former ICAP Plc broker Darrell Read was paid close to 600,000 pounds ($920,000) in salary and bonuses in 2010 despite having only a single client: Tom Hayes.
Read’s total pay almost doubled from two years earlier when he earned 254,757 pounds, according to evidence presented during the fourth week of a trial in London. Prosecutors disclosed Read’s compensation and history with Hayes, a former trader at UBS Group AG and Citigroup Inc. who has been convicted of manipulating Libor, on Monday, according to court transcripts.
Read is one of six brokers from ICAP, RP Martin Holdings Ltd. and Tullett Prebon Plc accused of conspiring with Hayes to rig the London interbank offered rate, which is used to value more than $350 trillion of loans and securities. Hayes is appealing his conviction and a 14-year prison sentence issued in August.
Prosecutors say Read helped Hayes rig the benchmark interest rate by skewing a daily “Libor prediction e-mail” sent by one of his ICAP colleagues to more than 100 traders, including 13 of the 16 banks responsible for submitting to yen Libor each morning. Traders used the e-mail, which was billed as independent, to determine what figures to input each morning.
Read had been with ICAP and it’s predecessor, Godsell Astley & Pearce, in London’s financial district for more than two decades. In April 2007, he moved with his family to New Zealand shortly after Hayes relocated from the British capital to Tokyo.
His only client there was Hayes, prosecutors said.
Read’s boss Danny Wilkinson, who is also a defendant in the case, was paid 1.17 million pounds in 2009, up from 710,2004 pounds in 2009 and 746,674 pounds in 2008. His compensation for 2010 was not disclosed to jurors.
Hayes, who worked at UBS and Citigroup in Tokyo, was convicted of eight counts of conspiracy to defraud.
The trial is scheduled to last 12 weeks and the defendants’ lawyers will respond to the allegations at a later point in the case.