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Former Deutsche Bank trader conviction overturned in US Libor rigging case

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New York — United States Commonwealth A district judge on Friday overturned the conviction of a former trader at Deutsche Bank for manipulating the global lending benchmark, Libor, after an appeals court dismissed the convictions of two former colleagues he testified against. was found guilty of conspiring to

Judge Paul Engelmeyer of the U.S. District Court in Manhattan admits he vacated Timothy Parrietty's guilty plea and conviction and asked the government to return his $1 million fine. , said it served "the interests of justice."

The prosecutor did not object to the request. Parietty, 56, has also been sentenced to his three-year supervised release and is completing that sentence.

A former managing director of Deutsche Bank's New York money market derivatives trading desk pleaded guilty to conspiracy to wire and bank fraud in May 2016.

Prosecutors said Parietti manipulated his LIBOR from 2006 to his 2008 to profit from his own trading.

Parietti later helped convict former Deutsche Bank traders Matthew Connolly and Gavin Black of manipulating his Libor in October 2018, according to court documents. Offered "substantial" cooperation.

But in January, the Court of Appeals for the Second Federal Circuit in Manhattan overturned those convictions for lack of evidence.

Engelmayer said it meant that the evidence to support Parietti's guilty plea was also lacking. He added that he was unable to reenter the service industry and was deprived of voting rights and other rights in Florida, where he now lives. Mayer writes. "Under the first principles of justice, it would be unjust to uphold his convictions."

Parietti's attorney did not immediately respond to a request for comment.

Before being phased out in January, Libor, or the London Interbank Offered Rate, underpins hundreds of trillions of dollars in financial products, including credit cards, mortgages and other loans. I was.

The Libor manipulation investigation resulted in nearly $9 billion in fines for banks worldwide, including $2.5 billion against Deutsche Bank

Parrietty, United States District Court, Southern District of New York, No. 16-cr-00373. (Reporting by Jonathan Stempel, New York; Editing by Daniel Wallis)