(Reuters) — A U.S. judge on Friday threw out a former Deutsche Bank AG trader’s conviction for conspiring to rig the global lending benchmark Libor, after an appeals court overruled two former colleagues he testified against.
U.S. District Judge Paul Engelmayer in Manhattan granted Timothy Parietti’s request to vacate his confession and conviction, and have the government repay his $1 million fine, saying it served “the interests of justice.”
The prosecutor did not oppose the request. Mr. Parietti had also been sentenced to three years of supervised release and has completed that sentence.
The former managing director of Deutsche Bank’s money market derivatives business in New York had pleaded guilty in May 2016 to conspiring to commit wire fraud.
Prosecutors said Parietti manipulated Libor, short for the London Interbank Offered Rate, from 2006 to 2008 to boost profits on his own trades.
Court papers say Mr Parietti later provided “substantial” cooperation that helped convict former Deutsche Bank traders Matthew Connolly and Gavin Black in October 2018 of rigging Libor.