London Police charge man over $2 billion UBS fraud

LONDON Fri Sep 16, 2011 9:34am EDT

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LONDON (Reuters) - London police probing a $2 billion loss at Swiss bank UBS charged trader Kweku Adoboli with fraud on Friday.

Adoboli, 31, who was a UBS director of exchange traded funds, will appear before City of London Magistrates court later on Friday.

Police said that shortly before 1 p.m. (1200 GMT) prosecutors had approved charges being brought against Adoboli, from Bethnal Green in east London.

"City of London Police has since charged the 31-year-old with fraud by abuse of position and false accounting," police said in a statement.

"The City of London Police investigation is ongoing and officers continue to work in close collaboration with the FSA (Financial Services Authority), SFO (Serious Fraud Office) and CPS (Crown Prosecution Service)."

The statement said no further details would be issued.

Adoboli was arrested in the early hours of Thursday.

(Reporting by Michael Holden; editing by Keith Weir)

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Comments (3)
Nick.Davison wrote:
That’s going to chafe a bit when they reclaim it through PAYE deductions lol

Sep 16, 2011 10:34am EDT  --  Report as abuse
Cocogrrrlll wrote:
This guy is a patsy. They threw him under the bus. I don’t for a minute believe he did it. Something is very fishy here. Too many checks that were supposed to be in place to prevent this and all were circumvented by this guy? Bullpucky. This bank is a dirty bank. Dont believe that this guy did it. People need to speak out and not let him take the fall.

Sep 16, 2011 11:14am EDT  --  Report as abuse
These chaps such as Mr. Adoboli, are hired on the basis of their psychological ability to understand and manipulate numbers, think quickly and judge risks. Then try are trained to trade million and millions in currencies, backgammon-like. When they win they get bonuses, if they loose a little it is just part of the casino like game, but if the loss is too big to hide, they are dubbed “rogue traders” and the compliant police and not quite smart enough regulatory agencies arrest them and they are sent off to jail. Sentenced by judges that cannot reasonably be expected to understand the intricacies of the transactions on which they must pass life changing judgment on the poor saps standing in the dock. This is unjust and more. Changes must be made. And not just in the UK, but across the European Union. Additionally, there needs to be an examination of just what the uncontrolled and uncontrollable banks are up to in their backrooms. With our money and the money of our nations. The need for action is urgent.

As for America, ‘fergetboutit’…!! The Obama Administration, as was the previous George W. Bush’s, is chock full of Harvard Business School and Wall Street rethreads.

C. ALEXANDER BROWN

Sep 18, 2011 6:54am EDT  --  Report as abuse
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