June 8 (Bloomberg) -- Kweku Adoboli, the former UBS AG trader who allegedly caused a $2.3 billion loss from unauthorized trading, will be freed on bail while he awaits trial in London, his lawyer said following a court hearing.
Adoboli, 32, can leave Wandsworth prison in southwest London, where he has been in custody since around the time of his arrest on Sept. 15, his lawyer Tim Harris said following a hearing held today in private at a London court. He was previously denied bail in February, his only other request.
While Harris declined to provide details on the bail amount, he said Adoboli will wear an electronic monitoring device and have a curfew. He will have to reside at a friend’s home in London. A trial for Adoboli is scheduled for early September. He has pleaded not guilty to fraud and false accounting for allegedly causing the loss, the largest from unauthorized trading in British history.
Harris said his client was “delighted, hugely grateful to the judge and his friends and family for supporting him.”
UBS spokeswoman Jenna Ward declined to comment.
Adoboli worked for the investment bank’s Delta One desk, which handles trades for clients -- or risks the bank’s own money -- typically by speculating on, or hedging the performance of, a basket of securities.
At a hearing in April, lawyers for Adoboli said he was seeking documents from UBS to use for his defense, including details from disciplinary hearings with his former co-workers at the Swiss bank and e-mails he sent and received from colleagues. UBS suspended or took disciplinary actions against eight other employees at the investment bank.
The U.K. Financial Services Authority and the Swiss Financial Market Supervisory Authority, known as Finma, are investigating the risk controls at UBS’s investment bank that didn’t prevent the unauthorized trades. The regulators said in a joint statement in February that they were formalizing their enforcement action of the incident for which the bank claims Adoboli is responsible.
The move to a formal enforcement proceeding typically indicates the regulators have found sufficient evidence of financial rule violations. UBS has said it is cooperating.
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