Convicted UBS Trader Adoboli Appeals Rogue-Trade Sentence
Convicted UBS AG (UBSN) trader Kweku Adoboli asked a British appeals court to overturn his seven-year prison sentence for causing a $2.3 billion loss through unauthorized trades.
Adoboli, 32, was convicted in November of two counts of fraud for causing the loss at the bank’s London unit. He filed the request to have his case reviewed with the U.K. Court of Appeal in London in December, according to court records made available this week. The appeals court must decide whether to hear the case.
Adoboli pleaded not guilty and argued at trial that managers at the Swiss bank pushed him to take too many risks and that rule-breaking at the bank was rampant. While he admitted causing the loss, he said it wasn’t done dishonestly. Adoboli was ordered to serve at least half of the seven-year term. He’s already been in custody for more than a year, including his time in jail before trial.
He is serving his sentence at Verne Prison on the Isle of Portland, a jail on a small island off the south coast of Dorset, England, that was once a military barracks. He has joined the choir and taken on a volunteer role at the prison.
While the 10-member jury was unanimous in finding Adoboli guilty of one count of fraud during the period in which the loss was caused, jurors didn’t reach unanimous decisions on the remaining fraud count and on four counts of false accounting. He was convicted 9-1 on the second fraud charge, which dated back to 2008, and acquitted on the false accounting charges.
Adoboli, who worked for UBS since leaving college, was accused of hiding the risk of his trades by booking fake hedges and storing profits in a secret account to cover the costs of running the bank’s exchange-traded-funds desk.
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