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Kweku Adoboli faces fourth charge

UBS trader charged with fraud relating to activities between 2008 and 2010, in addition to two allegations of false accounting and one of fraud in 2011

Kweku Adoboli, the 31-year-old charged with fraud and false accounting at UBS, was remanded in custody until 20 October on Thursday after learning he also faced a second fraud charge.

Lawyers for Adoboli, who holds a Ghanaian passport, did not make an application for bail at the hearing in the City of London magistrates’ court that followed the three charges police brought against him on Friday.

The alleged “unauthorised trading” announced by the Swiss bank has caused turmoil at the bank, which has raised the estimate of losses from the incident to .3bn from bn.

The trader spoke only to confirm his name, birth date and address at the hearing. He did not enter a plea.

He originally faced three charges. Two claim that Adoboli falsified records of exchange traded funds – complex financial instruments – between October 2008 and December 2009 and then in January 2010 and September 2011. The third charge alleges that he committed fraud between January 2011 and September 2011 while senior trader in global synthetic equities.

The fourth charge, of fraud, was made on Thursday, relating to activity between 1 October 2008 and 31 December 2010.

Adoboli is represented by the law firm Kingsley Napley, which also advised Nick Leeson, the rogue trader who brought down Barings in 1995. A committal hearing originally set for 22 October will now take place on 20 October.

The Swiss bank is now under intense pressure to restore confidence in its investment banking arm. The Zurich-based bank’s board is meeting on Thursday and Friday in Singapore where chief executive Oswald Grübel, parachuted in to the bank in 2009 when UBS was on the brink of collapse, is determined to secure his future.

The head of UBS’s investment banking arm, Carsten Kengeter, has urged staff to work hard to repair the “financial damage” caused by the alleged incident, which the bank has admitted will tip it to a loss in the third quarter.

An update on the bank’s strategy is expected on 17 November at a previously arranged investor meeting in New York. © 2011 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds