LEAD: Ex-trader pleads not guilty for unauthorized UBS trading

Jan 30, 2012, 14:47 GMT

London - Former UBS trader Kwaku Adoboli, accused of losing 1.5 billion pounds (2.4 billion dollars) in unauthorized trading while at the Swiss bank, on Monday entered a not-guilty plea.

Adoboli, 31, originally of Ghana, appeared at the Southwark Crown Court and entered not-guilty pleas to two counts of fraud and two counts of false accounting.

Judge Alistair McCreath set a provisional trial date of September 3, the Press Association reported. The next hearing will be April 9. The charges relate to the period between October 2008 and September 2011.

Britain's Financial Services Authority and its Swiss counterpart are investigating why UBS failed to notice the allegedly fraudulent trading.

The case has had significant repercussions for the bank, leading to former president Oswald Gruebel's decision to step down amid questions of whether the bank had enough controls in place to keep a relatively inexperienced trader like Adoboli from being able to place trades with such large sums.

Adoboli allegedly used his knowledge of UBS systems to place unauthorized trades in an effort to make profits. But the trades ended up falling apart. Adoboli said in a past court appearance that he was 'sorry' for the incident.

He remains in custody, but the judge said a review will be conducted about releasing Adoboli on bail.

British and Swiss authorities continue to investigate how the bank did not have sufficient safeguards against such behaviour. There is a possibility the bank will have to pay further fines.

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