18/09/2012

City Trader On Trial For Fraud Lost £123,000 Spread Betting

The City trader accused of bringing Swiss bank USB to the brink of collapse by losing £1.4bn had lost £123,000 of his own cash through a spread betting account, a court has heard.

A jury heard how Kweku Adoboli lost so much of his own money spread betting that he had turned to Wonga.com and a string of other payday lenders.

32-year-old Adoboli opened an account in March 2010 with IG Index, a spread betting firm that allows customers to make bets on financial instruments.


In the year running up to his arrest last September he lost £123,000 and was issued with two warnings by his bosses for failing to declare the account, which breached the banks rules.

He had also opened a second spread betting account at City Index.

Southwark crown court also heard that despite his £360,000 annual salary Adoboli's personal bank account was mostly overdrawn.

The account showed a string of payments to Wonga.com, Moneybox.com, Wageday Advance, Payday UK, Pounds to Pocket and three other payday lenders.

His bank account also shows his monthly salary payments increased from £2,886.66 in October 2008 to £6,176.69 in October 2010.

Adoboli, who worked for UBS's Delta One trading desk, denies two charges of fraud and two of false accounting dating back to 2008.

(H)

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