Accused UBS rogue trader did not act alone: lawyer

Thu Sep 27, 2012 10:28am EDT
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By Estelle Shirbon

LONDON (Reuters) - The lawyer for accused UBS UBSN.VX rogue trader Kweku Adoboli said he did not act alone but learned his behavior from colleagues at the Swiss bank who later "stabbed him in the back".

Adoboli, 32, denies charges of fraud and false accounting that cost UBS $2.3 billion

His lawyer, Charles Sherrard, told Southwark Crown Court on Thursday that Adoboli's three colleagues on the Exchange Traded Funds desk had actively taken part in some of the fraudulent behavior of which he is accused.

Sherrard made the comments as he began cross-examining John Hughes, who along with Adoboli was a senior trader on the four-man desk.

The other two traders, who were more junior, are due to give evidence after Hughes.

Prosecutors say Adoboli was an "out of control" rogue trader who had abused the bank's trust in him for personal gain.

His defense team have argued UBS turned a blind eye to rule-breaking as long as it made the bank money.

Sherrard read out a transcript of a chat between the two men, dated January 4, 2011, in which Hughes instructed Adoboli to book some profits made in late 2010 as if they had been made in early 2011.   Continued...

Former UBS trader Kweku Adoboli arrives at Southwark Crown Court in London September 20, 2012. REUTERS/Stefan Wermuth