UK: City trader appears in court over �1.3 billion fraud

A City trader wept in the dock today as he appeared in court accused of a �1.3 billion fraud at Swiss banking giant UBS.

With an open-necked white shirt and sky blue sweatshirt, Kweku Adoboli stood accused of fraud and two charges of false accounting, one of which dated back to 2008.

The 31-year-old was remanded in custody to appear again at City of London Magistrates Court for a committal hearing on September 22.

After the hearing City watchdogs the Financial Services Authority and the Swiss Financial Market Supervisory Authority, said they had ordered a “comprehensive, independent investigation” into the events surrounding trading losses at the bank’s London operations.

This will see a third party investigate the details of the alleged unauthorised trading activity and why the activities remained undetected.

It will also assess the overall strength of UBS’s controls to prevent fraud.