[ by Melanie Gretchen ] Former UBS trader Kweku Adoboli entered his plea this week to charges of fraud and false accounting resulting in a $2.3 billion trading loss at UBS last year.  He faces up to 10 years in prison if found guilty of 2 counts of falsifying accounts and 2 counts of fraud by abuse of position.  Without giving any reasoning for his plea, he pled not guilty to all counts. Judge Alistair McCreath remanded Adoboli in custody, saying the trial would start on 9/3/12, to last up to 8 weeks.  Adoboli's lawyer, Paul Garick, said he expected to enter an application for bail shortly. Allegations. Adoboli was arrested on 9/15/11 on suspicion of fraud after UBS had alerted the police, following a loss by the bank of $2.3 billion.  According to UBS, Adoboli hid unathorized trades in equity index futures from internal risk controls with fictitious trades. Since his arrest last fall, Adoboli fired his lawyers at Kingsley Napley, which previously represented rogue trader Nick Leeson, in December to switch to another law firm, before asking the court for more time to enter a plea. Investigation. UBS's own, internal investigation found that while its risk controls discovered something unusual and red flags were raised, those in charge did not investigate them sufficiently.  The British regulator, the Financial Services Authority, has hired the accounting firm KPMG to assist, while the Swiss watchdog, the Financial Market Supervisory Authority, continues its probe. In the wake of the trading scandal, CEO Oswald Grübel resigned, alongside the co-heads of the equity division in London, where the trades occured. For more details, go to [Dealbook, 1/30/12].