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UK's SFO wants Boath lawsuit heard privately to protect Barclays' probe

Tue, 15th Nov 2016 15:52

* SFO wants interview with former senior banker keptconfidential

* Former executive Boath suing Barclays over pay

* SFO is probing Barclays' 2008 financial arrangements withQatar

By Kirstin Ridley and Steve Slater

LONDON, Nov 15 (Reuters) - The UK Serious Fraud Office (SFO)is pressing for a civil lawsuit against Barclays byformer senior investment banker Richard Boath to be heard inprivate to avoid prejudicing its investigation into the bank's2008 emergency fundraising.

Boath, one of a number of former top Barclays executivesquestioned by the SFO in a criminal investigation over thebank's fundraising from Gulf investors during the credit crisis,is suing Barclays in a pay dispute, according to court listings.

The SFO said it had applied to the East London EmploymentTribunal to either impose privacy on the proceedings or toensure that Boath and Barclays' legal representatives do notrefer to the contents of an SFO interview with Boath in opencourt when the case kicks off in earnest next week.

The SFO application is due to be discussed in court on Nov.21. No further details were immediately available.

The agency has said it expects to decide whether to chargeBarclays and former executives early next year in its criminalinquiry into the bank's financial arrangements with Qatar, thatincluded a Barclays' loan to the Gulf state.

The investigation centres on commercial agreements betweenBarclays and Qatari investors as part of a capital raising toraise a total of about 12 billion pounds ($15 billion) at theheight of the credit crisis.

Barclays' emergency fundraising, which allowed the bank tobecome one of the few British lenders to sidestep a statebailout, has also triggered a separate civil lawsuit bybusinesswoman Amanda Staveley.

Her private equity group PCP Capital Partners is claimingaround $1 billion in damages for alleged fraudulentmisrepresentation.

That case, which is due to come to trial in January 2018 ifit is not settled, hinges on the terms that Qatari and Abu Dhabiinvestors received for participating in a cash call by Barclaysto raise around 7 billion pounds in 2008.

Staveley, who put together a syndicate of Abu Dhabiinvestors in October 2008, has alleged in court documents thatBarclays made an undisclosed $3 billion loan to Qatar shortlybefore completion of the October 2008 capital raising.

Barclays said in 2013 that British authorities wereinvestigating the bank and four current and former senioremployees over the fundraising.

Sources familiar with the matter have said Boath, who wasco-head of global finance in EMEA at the time of the capitalraising, has been interviewed alongside former chief executivesBob Diamond and John Varley, former finance director Chris Lucasand former tax advisory boss Roger Jenkins among others.

Boath, most recently Barclays' chairman of the financialinstitutions group, left the bank in March. He has not publiclycommented on the investigation.

Barclays declined to comment.

($1 = 0.8065 pounds) (Additional reporting by Alex Chambers; Editing by AdrianCroft)

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