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Kweku Adoboli jailed for fraud over £1.4bn UBS loss | |
(about 1 hour later) | |
A City trader who lost £1.4bn ($2.2bn) of Swiss bank UBS's money has been jailed for seven years after being found guilty of two counts of fraud. | |
Southwark Crown Court heard Kweku Adoboli was "a gamble or two away from destroying Switzerland's largest bank". | |
Adoboli lost the money in "unprotected, unhedged, incautious and reckless" trades, the jury was told. | |
Adoboli, 32, of Whitechapel, east London, was cleared of four charges of false accounting. | |
He had denied the charges, between October 2008 and September 2011. | |
Adoboli, who was arrested on 15 September 2011, worked in UBS's global synthetic equities division, buying and selling exchange traded funds (ETFs), which track stocks, bonds and commodities. | Adoboli, who was arrested on 15 September 2011, worked in UBS's global synthetic equities division, buying and selling exchange traded funds (ETFs), which track stocks, bonds and commodities. |
He had joined the bank in 2003 and became a trader in 2006. | |
The court was told that at one point he stood to lose the bank £7.5bn ($12bn). | |
Adoboli, the Ghana-born son of a diplomat, told the jury his senior managers were aware of his actions and encouraged him to take risks. | |
He claimed he lost control over his trades during a period of market turbulence last year. | He claimed he lost control over his trades during a period of market turbulence last year. |
'Magic touch' | |
Adoboli was convicted of one count of fraud earlier on Tuesday. | Adoboli was convicted of one count of fraud earlier on Tuesday. |
The judge, Mr Justice Keith, gave the jury a majority verdict direction, saying they could deliver a 9-1 verdict on the second fraud charge and the four false accounting charges. | The judge, Mr Justice Keith, gave the jury a majority verdict direction, saying they could deliver a 9-1 verdict on the second fraud charge and the four false accounting charges. |
The jury had been reduced to five men and five women after two jurors were discharged. | The jury had been reduced to five men and five women after two jurors were discharged. |
Adoboli was found guilty by a majority verdict of the second fraud charge but acquitted of the four outstanding false accounting charges. | Adoboli was found guilty by a majority verdict of the second fraud charge but acquitted of the four outstanding false accounting charges. |
The prosecution said Adoboli had been a gambler who believed he had the "magic touch". | The prosecution said Adoboli had been a gambler who believed he had the "magic touch". |
But, giving evidence, Adoboli said everything he had done was aimed at benefiting the bank, where he viewed his colleagues as "family". | But, giving evidence, Adoboli said everything he had done was aimed at benefiting the bank, where he viewed his colleagues as "family". |
Adoboli said he had "lost control in the maelstrom of the financial crisis", and was doing well until he changed from a conservative "bearish" position to an aggressive "bullish" stance under pressure from senior managers. | Adoboli said he had "lost control in the maelstrom of the financial crisis", and was doing well until he changed from a conservative "bearish" position to an aggressive "bullish" stance under pressure from senior managers. |
He told the jury that staff were encouraged to take risks until they got "a slap on the back of the wrist". | He told the jury that staff were encouraged to take risks until they got "a slap on the back of the wrist". |
'Wanted it all' | 'Wanted it all' |
After the verdicts, Det Ch Insp Perry Stokes, from the City of London Police, which investigated Adoboli, said: "This was the UK's biggest fraud, committed by one of the most sophisticated fraudsters the City of London Police has ever come across. | After the verdicts, Det Ch Insp Perry Stokes, from the City of London Police, which investigated Adoboli, said: "This was the UK's biggest fraud, committed by one of the most sophisticated fraudsters the City of London Police has ever come across. |
"To all those around him, Kweku Adoboli appeared to be a man on the make whose career prospects and future earnings were taking off. He worked hard, looked the part and seemingly had an answer for everything. | "To all those around him, Kweku Adoboli appeared to be a man on the make whose career prospects and future earnings were taking off. He worked hard, looked the part and seemingly had an answer for everything. |
"But behind this facade lay a trader who was running completely out of control and exposing UBS to huge financial risks on a daily basis. | "But behind this facade lay a trader who was running completely out of control and exposing UBS to huge financial risks on a daily basis. |
"Rules put in place to protect the bank's position and the integrity of the markets were being bypassed and broken by a young man who wanted it all and was not willing to wait. | "Rules put in place to protect the bank's position and the integrity of the markets were being bypassed and broken by a young man who wanted it all and was not willing to wait. |
"When Adoboli's pyramid of fictitious trades, exceeded trading limits and non-existent hedging came crashing down, the repercussions were felt in financial centres around the world. | "When Adoboli's pyramid of fictitious trades, exceeded trading limits and non-existent hedging came crashing down, the repercussions were felt in financial centres around the world. |
"Now, just a year on, he is facing the reality that he was not above the law and will be made to pay for his crimes. Others who tread a similar path to his can expect the same fate." | "Now, just a year on, he is facing the reality that he was not above the law and will be made to pay for his crimes. Others who tread a similar path to his can expect the same fate." |