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Ex-UBS trader fined for role in fake loan scandal

Britain's financial regulator said Friday it has fined a former employee of Swiss bank UBS for helping to cover up losses from unauthorized trades.
/ Source: The Associated Press

Britain's financial regulator said Friday it has fined a former employee of Swiss bank UBS for helping to cover up losses from unauthorized trades.

The Financial Services Authority said it ordered Andrew Cumming to pay 35,000 pounds ($58,000) and banned him from working in his profession for at least five years.

Cumming, who worked at UBS' wealth management business in London, signed paperwork that helped document false loans that were used to conceal losses from unauthorized trading.

The regulator said the false accounting took place between October 2005 and late 2007.

"Cumming deliberately misled UBS and its customers," said Margaret Cole, FSA director of enforcement and financial crime. "Although he did not stand to make a personal gain, his complicity allowed a colleague to continue making unauthorized trades, while the losses continued to mount up."

Earlier this month the regulator fined UBS 8 million pounds for allowing employees to carry out unauthorized transactions with customer money. The bank has paid more than $42 million compensation to the wealthy customers who were affected.