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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.

From Compliance to Condemnation

When regulators began probing Libor manipulation, UBS allegedly saw an opportunity to “negotiate leniency” by turning Hayes into a scapegoat. The suit claims the bank misled U.S. prosecutors, portraying him as a rogue operator to deflect attention from its leadership.

“UBS’s disclosures were knowingly false,” the complaint argues. “It knew Hayes acted under company policy, but it rewrote the narrative to protect its executives.”

The filing accuses UBS of staging a “theatrical performance” to satisfy global regulators, describing the bank’s cooperation as a “show of contrition” with Hayes as the perfect villain — high-profile, but expendable.

“UBS needed a villain,” Hayes said. “Someone important enough to make a statement, but far enough from leadership to keep their hands clean.”

A Decade of Legal Turmoil and Vindication

In 2015, Hayes was convicted of conspiring to rig Libor and sentenced to 11 years in prison — a verdict that made global headlines. But in July, the U.K. Supreme Court overturned his conviction, acknowledging the flaws in the original case. A related U.S. indictment had already been dismissed in 2022.

Despite his exoneration, Hayes says the damage is irreversible: “UBS’s lies destroyed my career, my livelihood, and my reputation.”

He is seeking over $400 million in damages, citing loss of income, emotional trauma, and “the destruction of his family’s life.” The complaint also seeks to punish UBS for what he calls “the intentional destruction of an innocent man for corporate gain.”