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Sacked colleague of rogue UBS trader opens betting site

Published on Nov 22, 2012 11:24 PM

LONDON (REUTERS) - A former senior trader at UBS, sacked for failing to prevent colleague Kweku Adoboli from perpetrating the biggest fraud in British history, has set up a gambling website.

In a decision likely to be seized upon by critics who say traders have often made casino-style bets, Mr John Hughes started his gambling firm even though his website said his old job had "removed all sense of optimism from his character".

Adoboli, his former subordinate now serving seven years in jail for running up losses of US$2.3 billion (S$2.8 billion), argued during his trial that his own behaviour was the result of a risky trading culture encouraged by senior colleagues, and his lawyers alleged that Mr Hughes played a major role in "off-book" trading.

Mr Hughes admitted he had known of Adoboli's scheme to hide his giant losses and that he booked several fictitious trades himself, but he denied knowledge of some of Adoboli's biggest multi-billion dollar trades.

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