UBS rogue trader sentenced to seven years in jail

UBS rogue trader Kweku Adoboli is given a seven-year jail sentence after being convicted of two counts of fraud resulting in the Swiss bank losing $2.3 billion.

 LONDON, ENGLAND, UNITED KINGDOM (NOVEMBER 20, 2012) (ITN)  -  UBS rogue trader Kweku Adoboli was given a seven-year jail sentence on Tuesday (November 20) after being convicted of two counts of fraud resulting in the Swiss bank's losing $2.3 billion.

The charge of which Adoboli was found guilty alleged that he dishonestly abused his position by causing losses to UBS, intending to make a gain for himself or cause losses to UBS - or expose the bank to risk of loss - in breach of the 2006 Fraud Act."Behind all the technical financial jargon in this case, the question for the jury was whether Kweku Adoboli had acted dishonestly in causing a loss to the bank, to UBS of 2.3 billion US dollars. He did so by breaking the rules, covering up and lying. In any business context, his actions amounted to fraud, pure and simple. The amount of money involved was staggering, impacting hugely on the bank but also on their employees, shareholders and investors. This was not a victimless crime," the Deputy Head of Fraud at the Crown Prosecution Service, Andrew Penhale, told reporters outside Southwark Crown Court in London.

32-year-old Adoboli, convicted of Britain's biggest fraud, had cried when his lawyer read out old appraisals of his performance as a trader at UBS that described him as gifted, hardworking and an outstanding ambassador for the Swiss bank.

"To all those around him, Kweku Adoboli appeared to be a man whose career's prospect and future earning was taking off. He looked the part, he was articulate, and he seemingly had an answer for everything. But behind this facade lay a trader who was running completely out of control and exposingUBS to huge financial risks on a daily basis. Rules put in place to protect the bank's position and the integrity of the market were being bypassed and broken by a young man who wanted it all and who was not willing to wait," said Steve Head, City of London's Police Detective Chief.

Adoboli will serve half his sentence minus a year already spent in custody - a total of 2-1/2 years.

Though found guilty of fraud, Adoboli was earlier acquitted at Southwark Crown Court of four related charges of false accounting.