UBS 'Operation Chocolate' set up trader for wrongful UK prosecution, lawyers say
By Martin Coyle and Samuel Rubenfeld ( July 22, 2026, 13:32 GMT | Insight) -- UBS fed misleading information to US prosecutors about former trader Tom Hayes and orchestrated an internal investigation named Operation Chocolate which led to his wrongful jailing in the UK for manipulating lending rates, his lawyers have argued. Hayes is suing the Swiss investment bank for $400 million after his conviction for rigging the London interbank offered rate, or LIBOR, was overturned by the UK's top court last year.UBS fed misleading information to US prosecutors about former trader Tom Hayes and orchestrated an internal investigation named Operation Chocolate which led to his wrongful jailing in the UK for manipulating lending rates, his lawyers have argued in US court documents....
Prepare for tomorrow’s regulatory change, today
MLex identifies risk to business wherever it emerges, with specialist reporters across the globe providing exclusive news and deep-dive analysis on the proposals, probes, enforcement actions and rulings that matter to your organization and clients, now and in the longer term.
Know what others in the room don’t, with features including:
- Daily newsletters for Antitrust, M&A, Trade, Data Privacy & Security, Technology, AI and more
- Custom alerts on specific filters including geographies, industries, topics and companies to suit your practice needs
- Predictive analysis from expert journalists across North America, the UK and Europe, Latin America and Asia-Pacific
- Curated case files bringing together news, analysis and source documents in a single timeline
Experience MLex today with a 14-day free trial.