Biggest banking fraud in Britain trial starts

Wednesday, 01 February 2012 10:56

Written by Editor

Kweku Adoboli, the 31-year-old city trader accused of fraudulently gambling away a record £1.5 billion of Swiss bank UBS’s money while he worked there – making this Britain’s biggest banking fraud – pleaded not guilty on two counts of false accounting  during the period between October 2008 and September 2010 when he appeared in the dock at Southwark Crown Court in London this week.

Prosecutors allege he gambled away the cash but City watchdog, the Financial Services Authority and its Swiss counterpart, are asking why UBS failed to spot the fraudulent trading. A provisional trial date has been set for September 3rd 2012 and the proceedings are likely to be lengthy. Adoboli of Clark Street, East London worked for the banks global synthetic equities division buying and selling exchange traded funds which track different types of stocks, bonds and commodities, including metals. He is accused of using his position at the bank for personal gain and exposing the bank to losses or causing them losses.

As the pre-trial arrangements were announced, he sat forward taking notes. He is represented by Paul Garlic QC of Bark and Co who are famous for specialising in fraud cases.

Last year fraud reached an all time-high in the UK according to KPMG’s Fraud Barometer – reaching an astonishing £3.5 billion.