Trial date for trader accused of £1.3bn fraud

Pic: thetaxhaven

Tower Hamlets resident Kweku Adoboli will stand trial at Southwark Crown Court on September 10 for “unauthorised trading” that lost a Swiss bank £1.3 billion.

Adoboli, 31, from Clark Street in Stepney, pled not guilty to charges of fraud and false accounting this January after he was arrested last September for his activities at UBS.

Adoboli is accused of causing the largest loss from unauthorized trading in British history and has been remanded in custody since his arrest.

The scandal in 2011 caused the resignation of then-CEO Oswald Grubel after the financial services firm announced a $2bn loss.

Prosecutors allege that Adoboli, while working for UBS’ Global Synthetic Equities division, abused his position to expose the bank to risk of losses.

He allegedly exploited an obscure type of transaction in which traders can receive money for a security before the sale has been properly confirmed – even if they later fail to deliver.

The money cannot be easily received but will appear on the trader’s accounts and can be used for other transactions or as leverage in larger trades.

City watchdog the Financial Services Authority and its Swiss counterpart have launched an investigation into why UBS failed to spot allegedly fraudulent trading.

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