BUSINESS
09/27/2012 08:39 am ET Updated Nov 27, 2012

John Hughes, Colleague Of UBS 'Rogue Trader,' Manipulated Accounts

LONDON, Sept 27 (Reuters) - A former UBS trader who worked closely with accused fraudster Kweku Adoboli told a London court on Thursday he had manipulated the trading desk's accounts.

John Hughes, who was dismissed from UBS after Adoboli was arrested a year ago in connection with $2.3 billion in losses blamed on unauthorised trades, was giving evidence at Adoboli's criminal trial.

Adoboli's lawyer Charles Sherrard read out a transcript of a chat between the two men, dated Jan. 4, 2011, in which Hughes instructed Adoboli to book some profits made in late 2010 as if they had been made in early 2011.

Sherrard put it to Hughes that the aim of doing this was to make it look as if the desk had already significantly boosted its 2011 profits.

"It was a manipulation of the figures," Sherrard told Hughes, who replied: "Yes."

Hughes has not been charged with anything. Adoboli denies two charges of false accounting and two of fraud by abuse of position.

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