Rogue UBS trader released from prison early

Rogue trader Kweku Adoboli, who was jailed in 2012 for losing more than £1.4bn in unauthorised trading, has been released from prison after serving less than half his seven-year term.

Adoboli, 35, was released from Maidstone prison last week, reports the Guardian. He was arrested in 2011 over the largest trading loss ever in Britain while working at UBS investment bank, and was found guilty of two counts of fraud.

Adoboli spent nine months in prison ahead of his trial and conviction and served a further two and half years. 

Part of the unauthorised trading carried out by Adoboli, who worked on the ETF desk, involved creating and using an undeclared fund of profits, termed the ‘umbrella’, which had the effect of manipulating the desk’s reported profit and loss.

Amid the losses senior trader John Hughes was banned by the FCA for his part in the scandal, who deemed him “not a fit and proper person”.

At the time UBS was also fined £29.7m for failing to have proper risk controls in place to stop the fraud.

“This was the UK’s biggest fraud, committed by one of the most sophisticated fraudsters the City of London Police has ever come across,” said a statement by the City of London Police.

Adoboli will not be allowed to work in the financial services industry in London after his release, following FCA action.