9 bankers / traders that went to jail

Don't drop the soap!

Former City trader Tom Hayes has been sentenced to 14 years in jail after becoming the first person to be convicted by a jury of rigging the Libor interest rate. He is, however, one of many bankers / traders who ended up in prison.

Here's our list:

1. Nick Leeson

The former derivatives broker whose fraudulent, unauthorised speculative trading caused the collapse of Barings Bank in 1995. Leeson he was sentenced to six and a half years in Singapore, he was released from prison in 1999, having been diagnosed with colon cancer.

2. Kweku Adoboli

The UBS $2.3bn rogue trader was convicted of two counts of fraud and sentenced to seven years in prison in 2012. He served less than half his sentence.

3. John Rusnak

The former currency trader at Allfirst bank, then part of AIB Group, in Baltimore, Maryland who, in January 2003, was sentenced to 7½ years in prison for hiding US$691m in losses at the bank in 2002.

4. Bernie Madoff

The former non-executive chairman of the NASDAQ stock market, and the admitted operator of a Ponzi scheme that is considered to be the largest financial fraud in U.S. history at around $50bn. In 2009 then 70-year old Madoff was sentenced to 150 years in prison.

5. Rajat Gupta

The former main board director at Goldman Sachs was sentenced in October 2012 to two years in prison for leaking boardroom secrets to former hedge fund manager Raj Rajaratnam.

6. Bradley Birkenfeld

The former UBS private banker was sentenced to 40 months in prison in August 2009, after pleading guilty to a single count of conspiracy to defraud the United States by aiding and abetting a tax evasion scheme.

He was later awarded a $104m bounty by US authorities for whistleblowing.

7. Jerome Kerviel

The former Societe Generale derivatives trader is currently serving 3 years in prison for a $4.9bn unauthorized trading scandal that came to light in 2008.

8. Michael Milken

The Drexel Burnham Lambert 'junk bond king', Milken was indicted for racketeering and securities fraud in 1989 in an insider trading investigation. He eventually got 2 years in prison as the result of a plea bargain for securities and reporting violations - but not to racketeering or insider trading.

Even today, there are many who believe Milken did nothing wrong as the law was then written, and that he ultimately pleaded guilty to get the US government off his back and simply move on.

9. Yasuo Hamanaka

In 1996 Sumitomo Corporation lost $2.6 billion because of rogue trader Hamanaka, the chief of the company’s copper trading operations.

Hamanaka was sentenced to eight years in prison in 1998 and was released in July 2005.

 

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