(Bloomberg) – A federal judge in New York has retracted the plea of a former Deutsche Bank AG trader who admitted to collaborating with others to manipulate the Libor interest rate, after an appeals court upheld the convictions of two of his ex – colleagues earlier this year.
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Timothy Parietti “must be presumed innocent” in light of the January reversal, US District Judge Paul Engelmayer ruled Friday in Manhattan. He also had a conviction against Parietti revoked and ordered the government to “immediately repay” the $1 million fine he paid as part of his sentence.
“We are grateful to the judge for reversing Mr Parietti’s conviction based on his finding that Mr Parietti is innocent and to allow his conviction to stand would be a grave injustice,” his attorney, Larry, said. newspaper. “Justice has now been done.”
Parietti was a key witness in the 2018 trial of Matthew Connolly and Gavin Black, who were charged with conspiracy to manipulate London’s interbank interest rate offer for years. But the 2nd US Circuit Court of Appeals overturned their convictions and found that the plaintiffs could not prove that they influenced the bank to make false or misleading statements. The decision was a setback for the US government’s crackdown on alleged market manipulation.
By this time, Parietti had served his one day sentence and completed a period of assisted release. Parietti filed a petition to release his 2016 IOU on wire transfer conspiracy and bank fraud.
Engelmayer said Parietti’s plea process included claims by prosecutors that the government had enough evidence to support the allegations – a claim that turned out to be false.
“That representation was relevant to the court’s decision to accept Parietti’s admission of guilt, just as it probably was to Parietti’s decision to plead guilty,” the judge wrote. “Now that the circuit – based on its careful assessment of the trial evidence – has now exposed the underlying government evidence as insufficient to prove that offence, Parietti must be presumed innocent.”
The Justice Department, which did not oppose Parietti’s motion, declined to comment.
The case is US v Parietti, 16-cr-373, US District Court, Southern District of New York.
(Updates with commentary from Parietti’s lawyer.)
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