Rogues gallery: Five fraudsters who rocked finance

Author: Laura Miller
IFAonline | 16 Sep 2011 | 12:30

Categories: Regulation

Topics: Barings| UBS| fraud

Expenses Rogues 2010

Kweku Adoboli, an ETF trader at UBS, is suspected of unauthorised trading which cost the bank £1.3bn. But UBS is far from alone in suffering the sting of internal fraud, as this gallery of the world's most infamous rogue traders shows...

jerome-kerviel

Jerome Kerviel: Loss of £3.5bn

Outside the Madoff Ponzi scheme, Kerviel's losses from bad deals on the European markets are reported to be the largest fraud in banking history.

The former Societe Generale trader "breached five levels of controls" in the bank, and was "a genius of fraud", according to Christian Noyer, the governor of the Bank of France.

Kerviel - who made no personal financial gain on the fraud - was sentenced in October 2010 to three years in prison by a Paris court.

 

yasuo-hamanaka

Yasuo Hamanaka: Loss of £1.6bn

Japanese trading house Sumitomo Corp fell victim to a ten-year scam from unauthorised copper trades, primarily by chief trader Hamanaka.

Sumitomo sacked Hamanaka, whose trading team was believed to control 5% of the world's copper trading. He was later jailed for eight years.

  

nick-leeson

Nick Leeson: Loss of £800m

Barings investment bank collapsed after Leeson, a futures trader in Singapore, ran up liabilities worth more than the entire capital and reserves of the bank.

In 1995 a court in Singapore sentenced him to six years in prison. Barings was subsequently sold to Dutch bank ING for £1.

 

 

toshihide-iguchi

Toshihide Iguchi: Loss of £700m

Japan's Daiwa Bank received a nasty shock in 1995 after Iguchi, one of its senior US executives, confessed in a letter that he had incurred the loss through unauthorised bond trading. He was imprisoned a year later.

 

 

john-rusnakJohn Rusnak: Loss of £437m

Rusnak defrauded Allied Irish Bank's US subsidiary. He was sentenced to seven years in prison after he admitted a scam in which he pocketed £537,000 in salary and bonuses between 1997 and 2001.

 

More regulation news

Recommended reading

Categories

Topics

Comments

Bigger Frauds Yet!

Sirs, can you imagine any bigger frauds and crimes against business and world economies with the suppression of inventions and innovations. That would make the electric car a reality replacing the internal combustion engine which has been an obsolete power source for cars and trucks for at least fifty years, and a re-invented light bulb that would save the end user 75% of their energy bills, all but eliminate future repair costs, and greatly lessen the need for future nuclear and coal fired power plants, while saving the world untold trillions! Not to mention reducing air pollution and global warming while providing jobs. Hundreds of millions of them, plus stimulating the world economy. jsav.

Posted by: jsavage

16 Sep 2011 | 15:03
Complain about this comment

Really?

These guys are patsies for big money laundering, thievery, and sheltering.

Posted by: pepe

16 Sep 2011 | 16:26
Complain about this comment

Related articles

Most Read

Audio / Visual

Coffee Lounge

View all the winners here

PPR Structured Product Awards 2011

View all the winners here

This year we have 14 awards designed to mark out the very best products in a highly competitive and innovative market. This includes three new awards for 2011 to reflect the developments in this rapidly growing market: Best Dual/Multi-Index Product, Best Structured (Oeic) Fund and Best Structured Product Provider.

Events

event logo

International Fund & Product Awards 2012

14 Jun 2012 - 14 Jun 2012

London, UK

event logo

British Mortgage Awards 2012

03 Jul 2012 - 03 Jul 2012

London, UK

event logo

Cover Webinars

04 Jul 2012 - 04 Jul 2012

London, UK

Poll

Should there be a cap on hourly fees?

In Focus

Viewpoints