[ by Melanie Gretchen ]

Who is Kweku Adoboli?

The former UBS trader has been cast in many roles over the course of his trial in connection with a $2.3 billion trading loss.  The Ghanna-born British investment banker is charged with 6 counts of fraud and false accounting;  he has pled not guilty. 

Defense. In an epic turn, defense attorney Charles Sherrard on Monday compared his client to Spartacus, the main character in the 1960s Hollywood movie about a Thracian slave.  Like Spartacus, played by Kirk Douglas, Mr. Adoboli stepped forward to take the blame.

In the movie, Spartacus's fellow gladiators all claimed to be Spartacus to avoid him being singled out for punishment.  "Mr. Adoboli stands up and says 'I am Spartacus' and the other three stand up and said 'yes, that's him!', Mr. Sherrard told the jury in a London courtroom.  Unfortunately for Mr. Adoboli – whose supervisors condoned his behavior because it proved to be profitable, according to Mr. Sherrard – no one has stepped forward, and Mr. Adoboli could face up to 10 years if convicted.

Prosecution. Sasha Wass has painted a very different picture.  She has accused him of "playing God" with the Swiss bank's money, last Thursday, having "arrogantly" sidestepped the firm's rules and carried out risky trading activity from 2008 to 2011.

"There were no accidental losses. They were the result of planned, purposeful, unhedged trades.  Mr. Adoboli is a gambler, not a legitimate investment banker."

Unlike defense attorney Mr. Sherrard, Ms. Wass argued that the investment banker acted alone;  evidence did not indicate that UBS had known about his risky trades.  What happened, according to the prosecution:

• Hours before his arrest, Mr. Adoboli walked out of UBS after writing an e-mail to colleagues that said he had exposed the firm to potential multibillion-dollar losses
• Over 4 years, Mr. Adoboli created fictitious trades to hide his trading losses and concealed his activities from colleagues, the prosecution said.
• The financial risk of his activity totaled $8.1 billion – $6.6 million less than what UBS reported by mid-September 2011

During the trial, Mr. Adoboli conceded that he had hidden his actions through complex trades and misled UBS staff, though he denied that his activities were dishonest, the jury was told on Thursday.  [C-I Note: British law requires the prosecution to prove that he acted dishonestly to secure a conviction.]  Ms. Wass is of the opinion that Mr. Adoboli, to conceal his trades, created separate accounts to hide the profits and losses from his unauthorized activities.

"Like any gambler, Mr. Adoboli thought he had a winning hand."

Whatever Mr. Adoboli's final role in this drama will be is to be determined by the jury, which will begin deliberations early this week.

For further details, go to [Dealbook, 11/12/12] and [Dealbook, 11/8/12].