The tribunal handed Karpe a £1.25m ($1.97m) fine and agreed that he misled his juniors, and carried out substantial unauthorised trading, predominantly in FX instruments while he was head of UBS’s Asia II desk head.
He made unauthorised transfers and loans between client accounts concealing losses which resulted in substantial losses for 21 customers between 2006 and 2007, the tribunal said.
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Charging Karan, who received a £75,000 fine, the tribunal stated: "We recognise that Ms Karan had been placed in an extremely awkward situation through the manipulation of Mr Karpe. The fact, however, is that over and over again she chose to go along with and, on occasions, to facilitate Mr Karpe’s wrongdoing."
UBS has paid $42m compensation to its affected customers. In November 2009, the FSA fined UBS £8m for "management failures" in connection with Karpe and Karan’s misconduct.
Source: Private Banker International
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