Judge Emmet Sullivan of federal district court in Washington today was not prepared to rubber stamp the $298 million settlement between Barclays Bank and the Justice Department to resolve allegations the bank violated government sanctions in processing financial transactions with countries that include Cuba, Iran and Sudan.
Sullivan of the U.S. District Court for the District of Columbia pressed the Justice Department about why no individuals—and no person from senior management—was being held criminally liable for the actions of the London-based bank. Sullivan called the charges “shocking.” But at the end of a hearing that lasted more than an hour, Sullivan approved the deal.
The judge had plenty of questions. He said “there has to be a paper trail” that leads to a particular individual who participated in what he called an “elaborate” scheme to conceal more than $500 million in transactions with countries on which the United States government has imposed sanctions.
Justice lawyer Kevin Gerrity said Barclays’ senior management was unaware of the criminal conduct at the lower level of the bank. The Justice Department, Gerrity said, conducted its own interviews and looked to hold individuals accountable. The government was unable to identify a person for prosecution, he said.
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