- Associated Press - Monday, January 30, 2012

LONDON (AP) — A former UBS trader arrested in London on charges of fraud linked with unauthorized trades that cost the Swiss bank more than $2 billion pleaded not guilty Monday to the charges against him.

Kweku Adoboli, 31, pleaded not guilty at London’s Southwark Crown Court to two counts of fraud and two of false accounting between 2008 and September 2011.

The trader was arrested Sept. 14 after on charges of committing fraud that cost the bank over $2 billion.

The incident pushed then-CEO Oswald Gruebel to resign and damaged the bank’s efforts to clean up its image after being involved in a United States tax-evasion investigation and sustaining huge losses on subprime mortgages during the financial crisis.

The Financial Services Authority, a City watchdog, and its Swiss counterpart have launched an investigation into why UBS failed to spot allegedly fraudulent trading.

Mr. Adoboli’s case was delayed last year after he replaced his former lawyers at Kingsley Napley law firm with a new team from Bark & Co., which specializes in fraud cases.

Judge Alistair McCreath set a provisional trial date for Sept. 3 and remanded Mr. Adoboli in custody. The judge said he was willing to hear an application for bail.

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