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SocGen Trader Charged, Faces 7 Years

Kerviel didn't siphon off a cent, wanted to be 'a stand-out trader'

By Kevin Spak,  Newser Staff

Posted Jan 28, 2008 9:08 AM CST
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(Newser) – Jérôme Kerviel, the rogue trader who cost France's third-largest bank over $7 billion, was charged with attempted fraud by French authorities today, Bloomberg reports. Abuse of trust, the most serious of four charges, carries a potential 7-year sentence and $1.5-million fine. Police want him kept in custody, to prevent evidence tampering or flight.

Kerviel admitted faking trades and email trails to hide his positions, the chief prosecutor said at a press conference. His goal was to be a “stand-out trader,” the prosecutor said. He considered that for a long time he'd taken winning positions and had the "benefit of the doubt.'' Kerviel’s attorneys say he “committed no dishonest act, did not siphon off a single cent, and did not profit in any way,” and that SocGen is creating a "smokescreen" to hide losses elsewhere.

Photographers take pictures of the occupants of a police car, part of the convoy carrying Jerome Kerviel, who was appearing before a judge who will weigh whether to press preliminary charges, in Paris, Monday Jan. 28, 2008. (AP Photo/Thibault Camus)
Photographers take pictures of the occupants of a police car, part of the convoy carrying Jerome Kerviel, who was appearing before a judge who will weigh whether to press preliminary charges, in Paris,...   (Associated Press)
Head of the Financial Section of the Paris court, Jean-Michel Aldebert, addresses reporters outside the Financial Police headquarters, Saturday, Jan. 26, 2008 in Paris. (AP Photo/Michael Sawyer)
Head of the Financial Section of the Paris court, Jean-Michel Aldebert, addresses reporters outside the Financial Police headquarters, Saturday, Jan. 26, 2008 in Paris. (AP Photo/Michael Sawyer)   (Associated Press)
This internal security file photo photo taken from French bank Societe Generale's Web site shows a man identified on the site as Jerome Kerviel. (AP Photo/Societe Generale)
This internal security file photo photo taken from French bank Societe Generale's Web site shows a man identified on the site as Jerome Kerviel. (AP Photo/Societe Generale)   (Associated Press)
The head of the financial section of the Paris prosecutor's office, Jean-Michel Aldebert, foreground, arrives at the Financial Police headquarters, Sunday, Jan. 27, 2008 in Paris. Aldebert said Sunday the questioning of Jerome Kerviel, a trader implicated in a massive bank fraud case was proving extremely fruitful. (AP Photo/Thibault Camus)
The head of the financial section of the Paris prosecutor's office, Jean-Michel Aldebert, foreground, arrives at the Financial Police headquarters, Sunday, Jan. 27, 2008 in Paris. Aldebert said Sunday...   (Associated Press)
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Phone records could crack Kerviel case
Telegraph (UK)

Kerviel: Rogue or hero?
Economic Times (India)

Simple trades 'mutated like a virus'
Telegraph (UK)

World • Money

 
fraud • France • bank fraud • Jérôme Kerviel • Société Générale • trader • abuse of trust

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