A U.S. Appeals Court ruled that compelled testimony is not admissible in U.S. criminal proceedings, regardless of whether it was obtained lawfully in a foreign jurisdiction.
In United States v. Allen, the U.S. Court of Appeals for the Second Circuit in New York overturned the conviction of two former Rabobank traders – Anthony Allen and Anthony Conti (collectively, the "traders") – for wire and bank fraud in relation to allegations that the traders manipulated the London Interbank Offered Rate ("LIBOR").
As explained in a Cadwalader memorandum, the traders first gave statements regarding their alleged misconduct to the United Kingdom Financial Conduct Authority ("FCA"). Under UK law, the FCA is authorized to compel interviews from the subjects of investigations, with fines or imprisonment as potential consequences for noncompliance. The FCA shared transcripts of the traders' testimonies with a third investigation subject, Paul Robson (as the FCA is lawfully permitted to).
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