Former HSBC trader has fraud conviction overturned
Mr Johnson's US lawyer Alexandra Shapiro said: "We are delighted that justice has finally been achieved for Mark Johnson, after a nine-year ordeal. This is a case that never should have been brought."Prosecutors at Mark Johnson's trial alleged he had conspired with a colleague to increase the price of sterling against the dollar before executing a huge foreign exchange trade for HSBC's client Cairn Energy, converting $3.5bn into pounds.They alleged that on behalf of HSBC, Mr Johnson arranged to buy sterling in advance, inflating the currency's value so that the bank made a quick gain before executing the trade for its client at a higher price – so called 'front-running'.Following his conviction a foreign exchange industry body, ACI Financial Markets Association, petitioned the court, protesting that purchasing a currency ahead of a large trade was a normal industry practice to manage a bank's risk, known in the industry as 'pre-hedging'."Mr. Johnson carried out the Cairn transaction consistent with industry practice and in violation of no law or rule, and he looks forward to moving on with his life," said Ms Shapiro.Mr. Johnson, a father of five from Hampshire, was originally arrested on 19 July 2016 as he accompanied his son and a friend to JFK Airport on his way home to the UK and was later tried and convicted on 18 October 2017.His arrest took place three days after demands in Congress for the US government to pursue the prosecution of HSBC employees who had avoided facing justice.Those calls were prompted by a congressional report, Too Big to Jail, which revealed that the British government had secretly intervened on HSBC's behalf in 2012, when the bank face the risk of prosecution for helping a Mexican drug cartel launder £881m and for facilitating trades with US-sanctioned countries such as Iran, Libya and Sudan.Senior executives at HSBC had urged him to accept a new role in the US in March 2016, four months before his subsequent arrest. Because he was arrested in the US, it meant that there was no need for extradition proceedings.By contrast his alleged co-conspirator, Stuart Scott, contested extradition to the US and won his hearing. The US Department of Justice later withdrew the charges against him.
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Times
21 minutes ago
- Times
The new middle-class tax revolt
Hundreds of thousands of savers are making big changes to the way that they make and spend money for one simple reason: tax. Some are cutting the hours they work, while others are turning down promotions, giving their pensions away to family members or even considering leaving the country — all because of frozen tax thresholds and upcoming tax changes. The phenomenon known as fiscal drag — where more people pay more tax as wages increase because tax thresholds remain frozen — means that 6 million more people will pay income tax this tax year than in 2021-22. Almost 7.1 million workers are now in the higher income tax band, up 2.6 million since 2021-22, and the number of additional-rate payers has almost doubled to 1.2 million. Collectively, we're set to pay £298.6 billion in income tax in 2025-26 — an extra £89 billion compared with four years ago, the latest government figures show, and this is set to rise further because income tax thresholds will remain frozen until at least 2028. We're also on track to pay £6 billion in tax on our savings and £18.6 billion on dividends. 'Fiscal drag has had a devastating impact on the tax we pay. These figures show just how much damage is being done to our finances by this horrible stealth tax — and there is plenty more to come,' said Sarah Coles from the investment platform Hargreaves Lansdown. So it's no wonder that some families are shaking up their financial behaviour to avoid bigger tax bills. We spoke to four to find out how. Income tax thresholds have been frozen since 2021, and even those on relatively modest wages are now being dragged into the higher-rate 40 per cent band that is applied to earnings above £50,270 a year. For families this comes with an added sting in the tail because they start to lose their child benefit entitlement not far above this threshold. Child benefit is worth £26.05 a week for the first child and £17.25 a week for other children, but once one parent earns above £60,000 a year of adjusted income, you have to repay 1 per cent for every £200 earned over that threshold. Once one parent earns £80,000 you get nothing. Justin King, 55, a financial planner from Christchurch in Dorset, reduced his working hours to ensure that he was still eligible for child benefit, worth about £2,250 a year for Olivia, 16, and Amy, 14. 'I had the option to work more, but the extra income would have been largely eroded by higher tax and the loss of child benefit. When I weighed it up, it just didn't seem worth missing out on time with my family,' he said. Because eligibility for child benefit is based on adjusted net income — your earnings after pension contributions and certain tax reliefs have been deducted — there are ways you can avoid this trap. Dean Butler from the life insurer Standard Life said: 'Higher earners could consider increasing their pension contributions to reduce their adjusted net income below £80,000. This way you could get some or all of your child benefit back, while also saving for your future.' • Why high earners are cutting their pay (clue: it's about 600% tax) There is evidence that more people are doing exactly this. There has been a steep increase in the number of taxpayers with adjusted earnings that are between £1 and £3,000 below the threshold — almost 1 million, up from 893,000 a year earlier, according to HM Revenue & Customs data. King has started to increase his working hours again now his children are older and the child benefit threshold has been raised — it was £50,000 until April 2024 and went up to £60,000. He said: 'As a financial planner, I often encourage clients to make life choices based on their values, and at that point, family time mattered more to me than extra income. You need to do your sums and work out whether that extra day's work may be more valuable to you and your family than contributing to the Treasury.' Salary sacrifice is another way to reduce your earnings. Offered by some workplaces, it means agreeing to reduce your salary by a certain amount in exchange for extra benefits such as pension contributions. It means you also save on national insurance payments because you 'give up' part of your salary to go into your pension. 'It's important to note, however, that salary sacrifice can harm mortgage applications and reduce payments based on salary, such as maternity pay, so it might not be right for everyone,' Butler said. • How free nursery hours for more children backfired The £100,000 cliff-edge is the most punitive threshold in the UK tax system, with workers in this band facing a marginal tax rate (the amount you pay on the next £1 earned) of 62 per cent. For every £2 you earn above £100,000 you lose £1 of your £12,570 personal allowance (the amount you can earn each year before paying tax), with the allowance cut to nothing by the time you earn £125,140. It gets worse for families: once one parent earns above £100,000 a year in adjusted net income, they are no longer eligible for tax-free childcare (a government-backed savings account for nursery fees worth up to £2,000 a year per child) and they lose entitlement to free childcare hours. Parents with children aged between nine months and two years can get between 15 and 30 hours of childcare funded by the government during term time (rising to 30 for all children aged nine months and up from September). Parents of three and four-year-olds can get 30 free hours. With an average full-time nursery place for a child under two costing £341 a week in England, this can be a vital lifeline. Once you earn more than £100,000 in adjusted net income you lose the free hours for younger children entirely, and only get 15 hours for three and four-year-olds. Emily Farmer, 32, from Hampshire, had always aimed to earn £100,000 in her career in marketing, but since her daughter Olivia was born 11 months ago, she has reduced her working hours because it's simply not worth earning more. 'Reaching £100,000 always felt like a career milestone for me, but after having my daughter and nearing this threshold, I made the strategic decision to move to a four-day week,' Farmer said. 'It's a shame to have to sacrifice career progression to make my family finances work.' Making extra pension contributions can also help workers at this cliff-edge reduce their take-home pay and avoid punitive marginal tax rates, Butler said. 'This could also help you recover some or all of your personal allowance, depending on how much you put in.' Savers can put up to £60,000 a year into a pension, including tax relief, or 100 per cent of their earnings, whichever is lower. This can be particularly valuable when employer contributions are factored in. However, it is important to consider whether you may need the money early because it is not usually possible to get at your pension savings before 55 (rising to 57 from April 2028) without incurring a large tax bill. • I spend £200 a week on summer holiday childcare From April 2027 pensions are set to be included as part of an estate for inheritance tax (IHT) purposes, and this has upended many peoples' financial plans. Defined contribution pensions (when your pot is based on what you pay in plus investment growth) are exempt from inheritance tax, but with this set to change, many savers are rushing to give away their wealth to avoid a 40 per cent IHT bill when they die. The tax is paid on estates worth more than £325,000 (£500,000 if they include a main home left to a direct descendant on estates worth up to £2 million). Couples who are married or in a civil partnership can inherit each other's allowances, meaning up to £1 million can be passed on IHT-free. Just under 5 per cent of estates pay IHT in the UK, but this is expected to rise to 8 per cent after 2027, according to HMRC. Alistair Dickson is concerned that the changes could leave his children with an unwelcome tax bill and is making plans to pass his wealth on as tax-efficiently as possible, including considering putting his house into trust. Dickson, 57, who lives in Glasgow, is also spending more, using his annual gifting allowance, and is even exploring the idea of moving to Portugal, which has a favourable tax set-up. Everyone in the UK can give away up to £3,000 a year and it won't count as part of your estate for IHT purposes. You can also make small gives of up to £250 per person, as long as they also haven't benefited from the £3,000 allowance. It is possible to give away much larger sums IHT-free as long as you live for seven years afterwards, after which the gift will no longer be counted as part of your estate. • Surge in wealthy using insurance to beat inheritance tax hit You can also give away unlimited regular amounts out of surplus income, as long as it does not affect your standard of living and you keep records to show a pattern of giving. The money must come from income such as earnings, rent, pensions or an annuity, and not from savings. Adrian Murphy from the financial advice firm Murphy Wealth said: 'For years it was assumed that pensions would be the last port of call for income in retirement — or might never be touched at all — and most of it would find its way to your children,. But that has now changed. This will only drive more people to give assets away or look at alternative strategies.' Proposed changes to the Isa system are causing more savers to alter their plans. Adults can save up to £20,000 a year into an Isa, in cash or investments, or a mix of both, but it is thought that the chancellor, Rachel Reeves, may slash the cash Isa limit in her October budget, in a bid to encourage more people to invest. The uncertainty could be having the opposite effect. Savers poured a record £14 billion into cash Isas in April, according to the Bank of England. Rob Mack usually invests about £500 a month but has been funnelling any spare money into his cash Isa in case the allowance is cut. Mack, 50, from north London, has saved £5,000 so far this tax year and hopes to use as much of the £20,000 allowance as possible before the budget. 'We've made some adjustments to our family finances, moving savings into cash Isas to keep them accessible and tax-efficient. It's essential to have quick access to funds when unexpected expenses arise, like a car repair or a boiler breakdown,' he said. Murphy is advising clients to use the changes as a starting point to review their investments: 'Cash saving in most cases should be for emergencies and short-term liabilities or expenditure.'
BBC News
21 minutes ago
- BBC News
Inside the MasterChef crisis as Gregg Wallace, John Torode sacked
"Everyone is reeling."With his voice cracking, one MasterChef worker describes the drama of the past fortnight, which has seen both its presenters sacked in quick succession - first Gregg Wallace, and then John Torode."I'm in shock with it all. It's raw, and fresh," adds the member of production staff - who wants to remain months of near silence, recent events have moved at News has been speaking to people who have worked on the show, as well as insiders to the tense backroom discussions of recent weeks, and can reveal: Torode had nine complaints against him, including racist language, abusive language to junior production staff and sexual languageOnly one was upheld, for an incident on the set of MasterChef in 2018 when he used a severely offensive racist termInsiders reveal how a "defensive" production team tried to ride out the storm against Wallace to save his careerThe relationship between Wallace and Torode broke down and insiders say Wallace was briefing against TorodeTension between how production company Banijay and the BBC interpreted the findingsThe BBC intends to air the new series of MasterChef despite both presenters being sacked There was a long wait for the report into Wallace's conduct. The full version has not been made public, but an executive summary was published on revealed more than 40 claims against Wallace had been upheld, including one of unwelcome physical that night, Torode revealed an allegation that he had used "an extremely offensive racist term" had also been insisted he had "no recollection" of any of it, but by 5pm on Tuesday, he was at the top will claim action was taken swiftly and decisively. But behind the scenes, we can reveal there have been lengthy, pained discussions and extended tussles between the BBC and the show's production company Banijay over what to do, specifically about was hoped the report's publication would put an end to the crisis - but the events of this week have left both the BBC and Banijay facing even more questions. MasterChef team wanted to save Wallace For me, this all started a year ago, when I got a tip-off about a BBC presenter said to have been behaving badly - Gregg I mentioned his name to people in the industry, I was told it was "the biggest open secret in TV".After some digging and winning the trust of the people coming forward - mainly young female freelancers - BBC News revealed the allegations in November.I've been told by insiders that when the story broke, there was a sense that the MasterChef production team were defensive and wanted to ride out the who had worked with Wallace for years felt that responding would make it worse, hoping BBC News was just stirring up trouble and the story would go was a view that Wallace's career could be saved, and his worst behaviour was in the past. Others in the production team were in disbelief. A significant section of the report focuses on how few formal complaints were made, I have been told. This tallies with what freelancers said - they were worried about the repercussions of speaking the BBC corporate team, which has weathered many crises recently, could see what was brewing. They started to "get heavy" and demand action, and Banijay's leadership also realised they needed to get a was suspended and a law firm, Lewis Silkin, was hired to investigate. Attention then turned to the shows already in production. Could they carry on being filmed?There is a lesson here for the BBC, a source said. A long-running show with a close-knit team is both a strength and weakness."They know how to produce TV gold, year in and year out. But on the flip side, bad behaviour gets normalised and no one challenges it," they response, a Banijay spokesperson said that 94% of allegations upheld by the inquiry related to behaviour before 2018. They added that Banijay acquired Endemol Shine, which makes MasterChef, in 2020, and ways of reporting concerns "have improved exponentially in recent years". While Lewis Silkin carried out its inquiry, dozens more people approached BBC News with fresh claims about Wallace. BBC News is editorially independent from the wider corporation when it covers stories about the of those who came forward was a former MasterChef worker we are calling Alice, who says Wallace took his trousers down in front of her in a dressing contributed to the inquiry and says spending two hours with the lawyer, answering difficult questions, made things even was "no follow-up, no duty of care" from Banijay, she added. It is understood the production company disputes week, she and others who gave evidence received an email from Lewis Silkin, which BBC News has seen, telling them the inquiry was complete. The email also said it would not be providing individual feedback on specific said it was "deeply unsatisfactory" that she didn't find out whether her complaint had been upheld."I feel it's more than within our right to understand more about the investigation than what's shared in the news," she said. Torode faced complaints about behaviour on set The report into Wallace's conduct - which has taken eight months to compile - was widely expected back two Thursdays ago, but that day came and the scenes, frantic negotiations were under understand the BBC saw the findings and started asking questions, specifically on the other unnamed individuals referenced in of those was Torode. As we now know, an allegation he had used a severely offensive racist slur had been has been reported that Torode used the N-word at a season filming wrap party in 2019 while singing along to Gold Digger by Kayne is believed a debate started after he used the word among those present. However, the claim which was upheld against him relates to the previous year when he allegedly used the same word on set following the end of filming, and it was directed at a member of Torode sacked as Masterchef presenterGregg Wallace sacked as 50 more people make claimsWallace 'sorry' after 45 claims against him upheldOnly one claim was upheld against him. But BBC News understands that of the 10 additional complaints against other individuals mentioned in the report, nine were about Torode, including other allegations of racist language, abusive language towards junior production staff and sexual language which were unsubstantiated because of a lack of evidence or witnesses. We have not spoken to the people making those has said any racist language is "wholly unacceptable". And Banijay, it appears, was not initially planning to sack the BBC's director general Tim Davie has insisted it is drawing "a line in the sand".Torode had been "caught up in the new 'first strike and you're out' policy by the powers-that-be at the BBC," Max Goldbart, international TV editor at Deadline, said. "I wouldn't say Torode was collateral damage, I'd say that's offensive to the people who came forward," he said. But he added it was likely the BBC wanted to "reset" after the put these latest developments to the BBC, but it did not this week, a BBC spokesperson described the allegation as "an extremely offensive racist term," adding: "We will not tolerate racist language of any kind."Meanwhile, the role of a senior executive on MasterChef is also under the spotlight. It is thought they are the other person who had a complaint upheld against them for News has contacted that executive but has not heard back.A Banijay spokesperson said that in relation to the swearing allegation, "we are handling appropriately internally". Wallace and Torode were 'never friends' The relationship between Wallace and Torode, meanwhile, is believed to have broken notable that over the past year, Torode never backed Wallace. In an Instagram post in December, he appeared to be trying to position himself as separate from his co-host, describing the allegations against Wallace as "truly upsetting".And in his now-deleted Instagram post last week, where he leaked some findings from the report, Wallace seemed to hint at more to come for his co-host."What really concerns me about the short summary is others who have been found guilty of serious allegations have been erased from the published version of events. I, and I'm sure the public, would like to know why?"Insiders have told me that Wallace was briefing against his former they were "never friends," a former MasterChef worker told me."Clearly they had a good chemistry when the cameras were rolling. But you rarely saw them interact when the cameras were off," he says he heard Wallace make crude comments, such as a describing that a dish "tasted like his aunt's vagina"."And when Gregg was saying inappropriate things like that, John held his counsel. I never saw him step in."Another former MasterChef worker says the dynamic between the two presenters "seemed off", although she could never pinpoint also says Torode didn't ever call out his co-host when Wallace made inappropriate jokes. "John would eye roll but not say anything," she Wallace nor Torode responded to requests for comment. MasterChef is 'bigger than individuals' Away from the intrigue and allegations surrounding the presenters, many may simply be wondering whether one of their favourite shows will to BBC News this week, Tim Davie said MasterChef "absolutely" has a future, insisting the show is "bigger than individuals".It has a new base in Birmingham, and all the signs are that executives are fully committed to Monday - the day the report dropped - Shine TV (owned by Banijay) posted a job advert for an "experienced Midlands-based production secretary" to work on the next series of the show, starting this the MasterChef insider I spoke to said that despite all the drama of the past week, they are still working to "make the best MasterChef ever".Unlike many BBC shows, MasterChef is not an in-house production. In addition to the core show, it has the Professionals, Celebrities, and Christmas specials and is adapted in 65 territories viewing figures on linear TV have held up reasonably well, with 3.5 million people on average tuning in to the last series, unchanged from the year successful formats are hard to come by, particularly in the face of increasing pressure from streaming, which is why the corporation is so keen to hang onto dilemma, rather, is what to do with the series that have already been week, it was just amateurs, fronted by Wallace, that looked at risk. Now, with Torode also gone, that puts MasterChef Celebrities, filmed with Torode and Grace Dent, in jeopardy producer I spoke to said his greater concern was for the amateur chefs who have taken part in the series. BBC News has not managed to speak to any of the chefs. A copy of the contestants' guidelines, leaked to us, shows they are forbidden from speaking until the show goes a former chef on the show told me it would be "awful" if it was scrapped, for contestants who "gave up their time, had sleepless nights, dreamt only of recipes".The chefs are not given any compensation for lost time or income, just travel expenses, accommodation in a "fairly grim hotel" and a £20-a-day meal allowance, she the contestants can sue for lost income in the event of a series being filmed but not aired, is Davie indicated that Banijay is speaking to the chefs involved, and is working with them to come to a resolution. He insisted no decision has yet been some of the women who made claims about inappropriate behaviour by Wallace have asked why no-one is consulting them."They should not run the series," one said. Another said it would "make a mockery" of the people who have spoken out. Unanswered questions So, after a bruising week, there are still many unanswered still don't know who will replace Wallace and Torode. Names being floated include Grace Dent - who has already stepped in on Celebrity MasterChef - and Matt Tebbutt, from Saturday will clearly be hoping for a fresh start - a palate cleanser if you like - for the show as well as for the wider TV viewers would bond with new presenters remains to be seen. But unlike other shows, such as Top Gear, which are centred around their presenters, MasterChef was never really about Wallace and may also wonder what the men may do now, Torode's weekend programme is still in ITV's schedule, due to air on Saturday morning. But he will no longer be headlining a food festival next month, with Durham County Council saying he had "decided to take some time out".Meanwhile, Wallace has posted on Instagram offering his services as a weight loss expert for £200 per details may emerge about the swearing incident - and the unsubstantiated allegations - prompting further investigations and recriminations about who knew what, producer I spoke to says what's been reported, "doesn't feel like the show we've been working on over the years".He said it was a relief to know the show he loves will continue, adding, "I didn't want to see it go down this way."Additional reporting by Insaf Abbas.
Daily Mail
21 minutes ago
- Daily Mail
EXCLUSIVE Revenge of the Taliban: Ex-UK interpreter warns data leak will mean 'more executions' as warlords murder three Afghans linked to foreign forces in a week
Taliban warlords are on a vengeful killing spree against hundreds of Afghans after the British Government lost a top secret database. One man was shot by a gunman who stepped from an alley on Monday and fired four bullets at close range into his chest – one of three assassinations in the past seven days. Panic has been spreading since Tuesday when Afghans were officially informed their personal details had been lost in the UK's worst ever data blunder, putting 100,000 'at risk of death'. Thousands received 'notifications' from His Majesty's Government saying sorry, and adding: 'We understand this news may be concerning.' It is not known if the Taliban actually has the database, which includes names of Afghans who helped the UK, as well as members of the British intelligence community, it is understood. But one Afghan soldier, who fled to Britain for fear of retribution, believes his brother was gunned down in the street this week because the militant group was aware of his affiliation to the UK. He said: 'If or when the Taliban have this list, then killings will increase – and it will be Britain's fault. There will be many more executions like the one on Monday.' The Mail has seen a dossier of more than 300 murders that include those who worked with the UK and some who had applied for the UK scheme, the Afghan Relocations and Assistance Policy (ARAP). The murdered include Colonel Shafiq Ahmad Khan, a senior Afghan intelligence officer who had worked alongside British forces. The 61-year-old grandfather was lured into a trap and shot twice in the heart on his doorstep in May 2022. Others include commando Ahjmadzai, who applied for sanctuary in the UK, and soldier Qassim, both killed in April 2023. News of the killings comes after the media, public and MPs were kept in the dark while ministers launched evacuation mission Operation Rubific. The Mail discovered the data breach in August 2023. Since then, 18,500 Afghans have been airlifted to Britain in secret, with 23,900 expected overall. Yet some 75,000 Afghans will be left to fend for themselves – and were instead offered 'advice' on how to stay safe when the UK informed them it had lost their details. Afghans now know that the missing dossier contains their names, phone numbers, their family's details and other facts which could help Taliban revenge squads hunt them down. The Mail's revelations about the data leak and the unprecedented super-injunction to cover it up – which we spent two years fighting in secret courts – has triggered political and security storms. So far, three parliamentary probes have been launched, with MPs expressing outrage that the Government kept them in the dark for so long. Last October ministers agreed to spend £7billion without any parliamentary debate. Ahjmadzai (above, left) and Qassim (above, right) were both murdered in April 2023 The missing database contains the names of 18,800 people who had applied to the ARAP scheme for loyal Afghans who had worked alongside British forces. Military interpreters saved countless British lives by being their 'eyes and ears' on the frontline. In May 2024, when the High Court initially tried to lift the super-injunction, Mr Justice Chamberlain said: 'The one thing that can be said with confidence is that affected persons would be better off learning of the data breach by notification from the UK Government than from a knock on the door by the Taliban.' There has been fury this week as the deadly implications of the 'double betrayal' by Britain sunk in, with one angry former interpreter telling the Mail: 'We risked our lives for the UK standing beside them day after day. Now they are risking our lives again.' While the methods may change, Monday's assassination on a quiet dust-caked street in the capital Kabul has now become a weekly occurrence. The victim's brother was a soldier with the Afghan special forces known as the Triples who was given sanctuary in Britain. Within an hour, news of the murder had reached the brother in Britain, who is convinced his sibling was executed because the Taliban, having been unable to kill the Triple himself, sought revenge on his family instead. Elsewhere in the city, a day later, Taliban fighters dragged a woman from her home, beating her on the street and dumping her for neighbours to take to hospital. A former British military interpreter who witnessed it told the Mail: 'The woman's husband worked for the West and it was punishment for that work. He is hiding in Iran and they told her it was because he worked with "infidels".' The murder of the soldier's brother and the beating of the woman took place in the hours before the lifting of the super-injunction, and it is unknown if any of the victims featured on the lost list. The Taliban boasted this week that they had obtained the leaked data, although this could not be verified. Mohammed, a former interpreter who once translated for former Prime Minister Gordon Brown, is now in Britain. He said news of the lost database had spread like wildfire since Tuesday, striking the 'fear of god' into former interpreters like him. Mohammed, 38, who was pictured with Mr Brown in Afghanistan, said: 'This has changed everything. In the past the Taliban did not often have confirmation that an Afghan worked for the UK, or what his role was, but now we know it is on the dataset together with our family members. It is a gift that leads to death.' Last night the MoD referred the Mail to a statement made by Defence Secretary John Healy in the Commons on Tuesday. He said: 'My first concern has been to notify as many people as possible who are affected by the data incident and to provide them with further advice. 'The MoD has done that this morning. Anyone who may be concerned can head to our new dedicated website, where they will find more information about the data loss, further security advice, a self-checker tool, which will inform them whether their application has been affected, and contact steps for the detailed information services centre that the MoD has established.
