• 2 hours PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 4 hours Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 6 hours Syrian Rebels Relinquish Control Of Major Gas Field
  • 7 hours Schlumberger Warns Of Moderating Investment In North America
  • 8 hours Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 9 hours Energy Regulators Look To Guard Grid From Cyberattacks
  • 10 hours Mexico Says OPEC Has Not Approached It For Deal Extension
  • 12 hours New Video Game Targets Oil Infrastructure
  • 13 hours Shell Restarts Bonny Light Exports
  • 15 hours Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 21 hours Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 1 day British Utility Companies Brace For Major Reforms
  • 1 day Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 1 day Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 1 day Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 1 day OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 1 day London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 1 day Rosneft Signs $400M Deal With Kurdistan
  • 2 days Kinder Morgan Warns About Trans Mountain Delays
  • 2 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 2 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 2 days Russia, Saudis Team Up To Boost Fracking Tech
  • 2 days Conflicting News Spurs Doubt On Aramco IPO
  • 3 days Exxon Starts Production At New Refinery In Texas
  • 3 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 3 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 3 days China To Take 5% Of Rosneft’s Output In New Deal
  • 3 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 3 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 3 days VW Fails To Secure Critical Commodity For EVs
  • 4 days Enbridge Pipeline Expansion Finally Approved
  • 4 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 days OPEC Oil Deal Compliance Falls To 86%
  • 4 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 4 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 4 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 4 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 5 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 5 days Aramco Says No Plans To Shelve IPO
James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Trader Sentenced to Seven Years in Prison for $2.3 Billion Loss on Illegal Trade

Trader Sentenced to Seven Years in Prison for $2.3 Billion Loss on Illegal Trade

Kweku Adoboli, the ex-UBS AG trader, who caused $2.3 billion in losses for his bank due to illegal, unauthorised trading (the largest in British history), has been sentenced to seven years in jail.

Throughout the trial Adoboli pleaded not guilty to the claims of fraud, stating that his managers at UBS pushed the traders to take risks and break rules.

Following a similar case at Societe Generale SA, where Jerome Kerviel caused a $6.3 billion trading loss, UBS warned all of its employees to keep an eye out for illegal trading. Adobli, meanwhile, claimed that the only way to achieve the bank’s set goals was by ignoring such warnings.

Andrew Penhale, deputy head of fraud at the Crown Prosecution Service, explained that “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 of $2.3 billion. The amount of money involved was staggering, impacting hugely on the bank, but also on their employees, shareholders and investors.”

The ten man jury unanimously voted that Adoboli was guilty of fraud.

Related Article: Recent Global Events Investors Should be Keeping an Eye On

Judge Brian Keith told Adoboli upon his sentencing, that, “you are profoundly un-self-conscious of your own failings. You were arrogant enough to think that the bank’s rules for traders didn’t apply to you.”

According to Bloomberg, at least 11 UBS employees were either fired, or resigned, in the fallout of this case. Including; CEO Oswald Gruebel; the heads of global equities, Yassine Bouhara and Francois Gouws; Adobli’s colleagues on the ETF desk; and his former managers, Ron Greenidge and John DiBacco.

After the verdict had been given Adoboli said that, “in the end, the reason I’m most sad is because these losses weren’t the result of dishonest or fraudulent behaviour. These losses were the result of a group of traders who were asked to do too much, with too little resources, in a market that was too volatile.”

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News