Former UBS trader Tom Hayes, once branded the “evil mastermind” behind the notorious Libor scandal, has filed a $400 million malicious prosecution lawsuit against the Swiss banking giant, accusing UBS of orchestrating a calculated campaign to ruin his life and protect its own executives.
The complaint, lodged Monday in Connecticut state court, alleges that UBS “maliciously framed” Hayes, portraying him as a rogue trader even though he acted under the direct supervision and instruction of senior management.
“UBS knew Hayes acted at its direction,” the filing states. “Yet it offered him up on a silver platter to save itself from punishment.”
A Brilliant Mathematician Turned Scapegoat
Hayes, hired by UBS in his 20s for his “exceptional aptitude in mathematics and financial modeling,” said he was mocked by colleagues with nicknames like “Rain Man” and “Kid Aspergers.” Diagnosed with autism spectrum disorder, Hayes described himself as a rule follower who executed directives precisely as instructed — including those involving Libor rate submissions.
According to the lawsuit, UBS senior management explicitly encouraged traders to influence the London Interbank Offered Rate (Libor) to maximize profits for the firm’s Yen Desk. “At the time,” Hayes said, “this was a common and accepted practice across the financial industry.”
Hayes maintains he was open about his actions, even discussing rate adjustments in daily meetings and with UBS’s co-CEO. “No one ever told me it was wrong — until regulators came knocking,” he said.
