Kweku Adoboli, the former UBS trader charged with fraud leading to $2.3bn of losses, did not enter a plea in his first day in a lower court in London. The case was thus bumped to to Southwark Crown Court, a major London court that handles serious fraud cases, for a Nov. 22 hearing. However, the prosecution revealed details of how UBS uncovered the fraud. Prosecutor David Williams said that Adoboli was first questioned about his trades by one of his managers in August and then again on Sept. 13, when he was also asked whether he had contacted the credit risk department. According to Williams, Adoboli said he had not, and the next day was asked to identify the counterparties of his trades. Adoboli did not respond to that request and left the office to go to his apartment around lunchtime. From there, Adoboli sent an e-mail with some details about his trades to his managers, who then called him back to the office, according to the prosecutor. At 3.45 p.m. on Sept. 14, Adoboli returned to UBS and “cooperated with bank managers in identifying the trading positions,” the prosecutor said. At 3.30 a.m. the following day, UBS called the police and Adoboli was arrested shortly afterward at the bank. The scandal has prompted the resignation of UBS' chief executive, Oswald J. Grübel, and the departure of the co-heads of equities. Another eight people in that division were suspended in connection with the case. UBS is close to completing its own internal investigation into the trades and a separate investigation is under way by KPMG, which is working on behalf of the Swiss and British financial regulators. Four charges – two counts of false accounting and two of fraud – were brought against Adoboli. Williams said there was no application for bail but that in any case the government had concerns that Adoboli might interfere with witnesses given his close connection to former colleagues. Williams also said Adoboli was now in debt. [Dealbook, 10/20/11]