London: In a high-profile international financial fraud case involving Libya’s sovereign wealth fund, a UK court has sentenced two former senior bankers to lengthy prison terms, sending a strong message across global financial markets. Frederic Marino (59), a former French banker with JPMorgan Chase & Co, was sentenced to seven and a half years in prison, while Yoshiki Ohmura (50), a former banker at Julius Baer, received a three-and-a-half-year jail term.
The case relates to fraud worth £11.4 million, equivalent to approximately ₹1,275 crore, involving secret commissions siphoned off from investments made by Libya’s state-owned sovereign wealth entities.
A jury at London’s Southwark Crown Court found Marino guilty of fraud by abuse of position. The sentence was delivered in absentia, as Marino had already fled to France. Ohmura was also not present in court, having left for Switzerland shortly before sentencing.
Secret Commission Network Behind Libyan Investments
According to court records, Marino played a central role in establishing FM Capital Partners Ltd (FMCP), an asset management firm that handled investments for the Libya Africa Investment Portfolio (LAIP). Through this platform, thousands of crores of rupees belonging to the Libyan state were deployed into global financial markets.
Prosecutors alleged that Marino extracted undisclosed “finder’s fees” in return for arranging investments and concealed the proceeds through offshore companies and complex corporate structures. A significant portion of the funds was routed into highly complex derivative products, making it easier to obscure the true nature of fees and profits.
The fraudulent activity took place over a five-year period from 2009 to 2014, the court was told.
‘More Than ₹1,000 Crore Extracted Through Hidden Fees,’ Says Judge
Passing sentence, Judge Daphne Spiro said the defendants had exploited their privileged positions in the financial system.
“The world was at their feet. They were earning sums of money most people can scarcely imagine,” the judge observed. “At its heart, this was a very simple case — more than a thousand crore rupees were extracted through secret fees.”
The judge added that Marino had deliberately relied on the technical complexity of financial transactions as a shield to hide the underlying fraud and misappropriation of funds.
Second Trial After Earlier Conviction Overturned
The case is particularly significant because both men were tried for a second time. An earlier conviction had been overturned by the UK Court of Appeal on technical legal grounds, forcing prosecutors to retry the matter.
Marino fled to France even before the first trial concluded, while Ohmura left the UK for Switzerland shortly before sentencing. Following Brexit, both France and Switzerland have declined to extradite their citizens to the UK, raising serious questions about the enforcement of the prison sentences.
Ohmura Acted as Financial Intermediary
Prosecutors said Ohmura acted as a key intermediary between FMCP and other investment channels. He helped move illicit profits through a separate corporate entity and received a share of the proceeds in return.
The court described his conduct as part of a deliberate, coordinated and organised financial fraud, rather than a one-off lapse of judgment.
Warning Signal for Global Financial Markets
Legal and financial experts say the ruling sends a clear warning to the global banking industry that fraud involving sovereign wealth funds and public money will attract severe judicial scrutiny and punishment.
The Libya sovereign fund scandal continues to draw international attention and raises broader questions about transparency, accountability and oversight within the global banking system. Analysts argue that the case underlines the urgent need for stricter controls on complex financial products and offshore investment structures that can be used to weaken regulatory visibility.
