Ex UBS trader Adoboli denies fraud, faces trial

Mon Jan 30, 2012 8:19am EST
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By Peter Griffiths

LONDON (Reuters) - Former UBS trader Kweku Adoboli will stand trial in September after pleading not guilty on Monday to charges related to the loss of more than $2 billion on trades the Swiss bank says were unauthorized.

The trial, which is likely to shine a searching light on the adequacy of the bank's management and risk controls, could land Adoboli with a maximum 10-year jail sentence if convicted of the two counts of fraud and two of false accounting.

His lawyer Paul Garlick said Adoboli, who worked for the bank as a director of exchange traded funds in London, where the trial is being held, would try to win bail before it starts on September 3, nearly a year after his arrest.

The losses led to the resignation of UBS's former chief executive Oswald Gruebel and a shake-up of its investment arm to cut its exposure to risk.

Judge Alistair McCreath said the case was "of such magnitude" that there would have to be a long gap between the plea hearing and the start of the trial.

"An earlier trial would simply not be possible," he said.

Dressed in a grey suit and blue tie, Adoboli sat in the glass and wood-paneled dock at Southwark Crown Court, taking notes on a piece of paper. He thanked the judge before being led from the dock and back into custody at the end of the hearing.

Adoboli, the British-educated son of a retired United Nations official from Ghana, was arrested on September 15 and charged a day later.   Continued...

<p>UBS trader Kweku Adoboli leaves City of London magistrates' court in the City of London October 20, 2011. REUTERS/Andrew Winning</p>