2011 UBS rogue trader scandal

Kweku Adoboli Mawuli ( born May 21, 1980 in Tema, Ghana) is a Ghanaian investment banker and former employee of Swiss bank UBS. For this, he worked in investment banking in London. Any unauthorized commercial speculation the Bank suffered by him in 2011 to a loss of 2.3 billion U.S. dollars. In November 2012, he was convicted in the first instance for fraud to imprisonment for seven years. He appealed against the judgment.

Life

Adoboli grew because of the occupation of his father, a diplomat at the United Nations (UN) in different countries. In 1991 he moved with his family to London. A year later moved on his parents, Adoboli remained in the UK and attended a private boarding school in West Yorkshire. After graduation and a year break, he studied from 2000 at the University of Nottingham first chemical engineering before moving to e-commerce and business computer science.

For the first time in contact with UBS he arrived in 2002 as an intern. After graduating with a bachelor he rose in September 2003 at UBS as a trainee for university graduates. He worked in the trade processing (back office) before he came in late 2005 in the trading ( front office). He worked most recently at the end of September 2006 at the London Delta 1 trading team in Global Synthetic Equity Exchange - traded funds (ETFs ). In March 2008 he was promoted to Associate Director.

Indictment and conviction in the first instance / Petitions

On 15 September 2011 Adoboli was arrested in London. He was accused of having caused by unauthorized trades a loss of 2.3 billion U.S. dollars (about 2 billion Swiss francs). He was indicted on September 16, 2011, and later the indictment further incidents has been extended. Overall, he was accused of fraud by abuse of his position in two cases, and four cases of false accounting ( accounting fraud ) between October 2008 and September 2011. On June 8, 2012, a court ruled that he will be released subject to conditions on bail. His trial began on September 10, 2012 in London. He pleaded not guilty, but admitted in court that he disregarded the risk guidelines of the Bank, had worked with secret accounts and caused the loss. In his defense, he led her into the field, that he always had in mind the welfare of UBS and his superiors had condoned his actions implied. On November 20, 2012 Adoboli was sentenced at first instance by a London jury trial for fraud in two cases, the judge put the sentence to seven years fixed, of which he must serve at least half. From the charges of false accounting ( accounting fraud ) in four cases he was acquitted. He put in a December 2012 appeal against the verdict, a judge denied his request for appointment in June 2013 from. He then filed a second application for appeal, will decide on the three judge in a hearing on the legitimacy of the appeal request.

View of UBS ahead of the process

According to UBS, the loss resulted from unauthorized speculative trading in various stock index futures on the S & P 500, DAX and Euro Stoxx over the last three months before the indictment. In this case, the dealer had exceeded the risk limits. This he did but this concealed that he had made ​​bogus hedging transactions. This has led to a distortion of the actual dimension of risk. After the UBS - control bodies would have checked the positions of the dealer and directed questions to him, this had admitted his illicit activities on 14 September 2011.

Oswald Gruebel, chief executive officer (CEO) of UBS, resigned because of this incident on 24 September 2011.

The Swiss Financial Market Supervisory Authority ( FINMA ) announced a comprehensive, independent investigation in collaboration with the British financial market regulator Financial Services Authority ( FSA). A spokesman for FINMA described the case as the largest ever at a Swiss bank. It is the largest fraud case in British history.

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