Former Barclays PLC executives Roger Jenkins and Richard Boath created a "misleading audit trail" to conceal that the U.K. bank was paying Qatari investors more than other investors for supporting a capital increase intended to keep the lender afloat at the height of the 2008 financial crisis, the Financial Times reported, citing prosecutors at a London court.
Jenkins, former head of the bank's Middle Eastern business and Boath, former European financial institutions group head, were among former Barclays executives accused by the U.K. Serious Fraud Office of misleading the market during two capital calls in 2008 and of concealing more than £320 million of payments to Qatari investors. Thomas Kalaris, former wealth management head, was also accused in the case.
The trio denied charges of conspiracy to commit fraud by false representation, as well as substantive fraud offences, the FT noted.
Jenkins and Boath allegedly tried to conceal the payments to Qatari investors in a phone call, according to the report.
Jenkins in a call in June 2008 purportedly called then-CEO John Varley a "wally" for refusing to increase the proposed commission fees for the Qatari investors, the FT said. Varley, who was also accused in the case, was acquitted at an earlier trial after a court found that there was not enough evidence to hold him accountable.