UBS Trader Kweku Adoboli Jailed Over UK Biggest Fraud
He was a promising young trader, born in Ghana and educated in Britain, a rising star in the UK investment banking arm of Swiss bank UBS. But former trader Kweku Adoboli will now forever be synonymous with one of the biggest trading losses in financial history after gambling away £1.4bn ($2.2bn) of his employer’s money on unauthorised trades.
Kweku Adoboli UBS trader has been convicted on one count of fraud, the UK jury are still considering one more count of fraud and four of false accounting.
“Adoboli bowed his head when the jury foreman gave the unanimous verdict of all 10 jurors. Judge Brian Keith told the jury to seek similar verdicts on the remaining counts, but told them he would accept majority verdicts of 9-1 if necessary.”
Adoboli’s unofficial trades cost UBS more than £1.5 billion ($2.4 billion), Adoboli said that he was “under enormous pressure to increase profits” and that his colleagues knew about his activities.
“From late 2008 he began making unofficial deals, exceeding his daily limits and failing to make matching hedged trades, a requirement which restricts profits but caps possible losses.
“Adoboli initially accrued substantial profits, which were lodged in a secret account he called his “umbrella” and then drip-fed back on to the regular books. But as European markets hit turmoil in the summer of 2011 the trades began to make losses, which he attempted to recoup with ever-bigger punts.
“Adoboli insisted his colleagues knew about the umbrella, and spoke of a prevailing culture in which even relatively junior traders such as himself were given minimal oversight and tacitly urged to make money by whatever means necessary.”