The trial of a 32 year old former-business trader is set to begin tomorrow, Kweku M. Adoboli has been charged with false accounting and fraud. Adoboli has plead not guilty to the charges, but with no explanations to the disappearance of over $2 billion in the UBS investment bank, the courts will likely see a different perspective. The suspicious activity, believed to have began in 2008, is not the only thing plaguing the Swiss financial services company. In order to settle a tax fraud case in 2009, the investment bank agreed to pay $780 million, and just recently this year three executives were convicted for tampering with the municipal bond market. The case is not the only of its kind, companies in France and Britain have also faced similar scandals. Sergio Ermotti recently issued a memo that stated, “As uncomfortable as the entire trial will be for UBS, it will show us what the consequences are when misconduct occurs or when individuals do not take their responsibilities seriously,” which seems to set Adoboli as an example to others in the company. The trial is estimated to last about 8 weeks and if Kweku is convicted, he could serve up to ten years in prison. This multi-billion dollar loss has only worsened things for the already sluggish European economy and greatly impacted the quarterly profit earnings for the investment bank, dropping 39% to $1.2 billion. This was also reflected on the employees when 3,500 jobs were cut and separate divisions of the companies were terminated. British legal restrictions have hindered any comments from UBS and Adoboli's lawyers.
http://dealbook.nytimes.com/2012/09/13/trial-to-begin-for-former-ubs-trader-accused-of-hiding-huge-loss/?ref=business
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