Former UBS Trader Kweku Adoboli Pleads Not Guilty Over Unauthorized Trades
Kweku Adoboli, the former UBS AG (UBSN) trader who is accused of causing the largest loss from unauthorized trading in British history, pleaded not guilty to fraud and false accounting.Adoboli, dressed in a grey suit and blue tie, pleaded not guilty to all charges at a hearing in London today. A trial that may last as long as eight weeks was scheduled to start in early September.Adoboli, 31, has been in custody since Sept. 15 when UBS asked London police to arrest him for causing a $2.3 billion loss. The case led to the departures of Chief Executive OfficerOswald Gruebel and the co-heads of the Swiss bank’s global equities business. The trial could be “really awful” for UBS, said Steven Francis, a regulatory lawyer in London.“There’ll be an assessment of what training he was given” and of “the bank’s compliance procedures,” said Francis, a lawyer at Reynolds Porter Chamberlain, who isn’t involved in the case.UBS isn’t able to comment on the case because “English criminal law limits what we can say about this incident,” Oliver Gadney, a spokesman for the bank, said in an e-mailed statement.Adoboli, who was remanded into custody, is being held at Wandsworth prison in southwest London. One of his lawyers, Paul Garlick, told Judge Alistair McCreath he may request bail for Adoboli soon.
Time ExtensionsAdoboli, who worked for UBS’s investment bank, had been given two time extensions to enter a plea. In December, he received an extra month after hiring new lawyers at Bark & Co. and Furnival Chambers in London. Garlick told the court Dec. 20 that Adoboli hadn’t received “satisfactory legal advice” before he was hired. The former trader was also granted legal aid, or government assistance, to pay his lawyer fees.