Author Topic: Ex-French trader must pay $6.7 billion for fraud.  (Read 1323 times)

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Ex-French trader must pay $6.7 billion for fraud.
« on: October 05, 2010, 05:59:42 AM »
By GREG KELLER, AP
1 hour ago


PARIS — Former Societe Generale SA trader Jerome Kerviel was convicted on all counts Tuesday in one of history's biggest trading frauds, sentenced to three years in jail and ordered to pay the bank a mind-numbing euro4.9 billion ($6.7 billion) in damages.

The ruling marked a huge victory for Societe Generale, one of France's most blue-blooded banks, which has worked to clean up its image and put in place tougher risk controls since the scandal broke in 2008.

The 33-year-old former futures index trader stood expressionless as the court convicted him of all charges and pronounced a five-year sentence with two years suspended. Kerviel was found guilty on charges of forgery, breach of trust and unauthorized computer use for covering up bets worth nearly euro50 billion between late 2007 and early 2008.

In a stunning blow, the court also ordered Kerviel to pay the bank back the euro4.9 billion that it lost unwinding his complex positions in January 2008 — a punishment he would almost certainly be unable to pay.

There were audible gasps and surprised looks when presiding judge Dominique Pauthe read out the damages to a packed courtroom of 150 reporters, court officials and members of the public.

Outside the courtroom, defense lawyer Olivier Metzner called the financial penalty "unbelievable."



What is unbelievable is he will only serve 3 years in jail. 
A politician thinks of the next election. A statesman, of the next generation.- James Freeman Clarke

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