French Trader Accused in Giant Bank Computer Scam Gets Computer Job

April 28, 2008 ( - The man accused in the world's biggest trading scandal that cost Société Générale SA billions of dollars in damages as a result of a computer systems-related scheme now has a new job.

The Wall Street Journal reported that Jérôme Kerviel has started working at Lemaire Consultants & Associés, an information-technology consultancy specializing in IT network installation and security, according to his lawyer, Guillaume Selnet. According to the news report, Kerviel started the job weeks ago, after spending more than a month in prison, Selnet said.

class=”times”> When Société Générale announced January 24 that it had lost €4.9 billion (now valued at $7.68 billion) due to Kerviel’s risky and unauthorized trading, the bank depicted the former trader as a devious information-technology whiz. Bank officials said he could get around their internal-control systems because he had intimate knowledge of the back office, where trades are processed.

class=”times”> Prosecutors kicked off an investigation of Kerviel on charges of forgery, breach of trust, and breaking into computer systems while, in February, the former trader was ordered into custody because of fear he might tamper with evidence.

class=”times”> The news report said Kerviel has admitted to setting up an elaborate trading system designed to hide risky and fictitious trades, which, he said at one point left the bank exposed by €50 billion.

class=”times”> Kerviel landed his job at LCA thanks to his legal team, his spokesman, Christophe Reille, told the Journal.

class=”times”> As prosecutors continue their probe into the scandal, Kerviel is barred from activities related to trading in financial markets. Investigators, who are searching for potential accomplices, also have restricted Kerviel from contact with former colleagues at Société Générale.