Alleged LIBOR scandal participant Paul Thompson facing extradition to US after being taken into AFP custody

Alleged LIBOR scandal participant Paul Thompson facing extradition to US after being taken into AFP custody

DALKEITH financier Paul Thompson is in custody facing extradition to the United States over alleged participation in the multi-billion dollar LIBOR scandal.

“Mr Thompson was taken into extradition custody today in anticipation of his surrender to the US,” a spokesman for the Federal Attorney General’s Department told the Western Suburbs Weekly.

The spokesman would not comment on when Mr Thompson would be sent to the US, but he said once extradited Mr Thompson would face prosecution.

United States investigators have been inquiring into financial traders allegedly fixing the London Interbank Offered Rate (LIBOR) used to lend money between banks in the past.

The LIBOR was also used as a base rate to set many consumer lending rates, including credit cards, home mortgages and interest.

It was alleged the LIBOR was manipulated by many traders daily since the early 1990s.

The allegations prompted investigations, reforms including its removal as the rates-setting mechanism, and fines up to $US1.5 billion for some banks.

Mr Thompson was the managing director and head of liquidity at the Singapore headquarters of the Dutch Rabobank between 1996 and 2001, when fixing is alleged to have occurred.

In 2014, he and four colleagues from the bank’s Tokyo and London offices were charged by a US grand jury with conspiracy to commit wire and bank fraud.

Mr Thompson was arrested in October last year, and was on bail and reporting to WA Police daily until today.