Ex-UBS Trader Gets Seven Years for $2.3B Rogue Trade: Reports
NEW YORK (TheStreet) - Former UBS (UBS) trader Kweku Adoboli was found guilty of fraud that caused a $2.3 billion loss at the Swiss bank, according to media reports.
The trader was sentenced to seven years in prison, according to a flash update on Bloomberg. The maximum sentence for fraud is usually 10 years.
Adoboli was found guilty on two counts of fraud, but was cleared of charges of false accounting.
To be found guilty of false accounting, the jury had to be convinced that he acted for personal financial gain.
Adoboli's lawyers pleaded not guilty to fraud charges, arguing in their defense that the trader had acted to make money for the bank and that the bank's management was willing to look the other way so long as he brought in profits. Adoboli disclosed in an email to senior management in September 2011 that he had made unauthorized trades that had resulted in the losses. The rogue trade led to the departure of its CEO Oswald Gruebel and other senior management, as investors questioned the bank's risk control policies. --Written by Shanthi Bharatwaj in New York>To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: tips@thestreet.com.
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