Administration August 31, 2009

French Trader Blamed in Societe Generale Scandal to Go to Trial

August 31, 2009 (PLANSPONSOR.com) - Jerome Kerviel, former junior trader blamed by Societe Generale for close to $7.2 billion in losses, was ordered to stand trial on Monday, his lawyer Olivier Metzner told Reuters.
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Kerviel has been under investigation since the bank unveiled in January 2008 staggering losses it said were caused by unauthorized deals carried out by Kerviel (see French Trader Blamed for $7M in Losses Might Have Had Help ).

The attorney said Kerviel has been charged with fraud and breach of trust, among other things. He has admitted building up unauthorized trading positions, but said his supervisors tolerated breaches in its risk controls.

According to the news report, the charges carry a maximum penalty of five years in jail and 375,000 euros in fines.

Kerviel was freed from prison in March 2008 after an appeal against his detention, but he has remained under investigation for breach of trust, computer abuse, and falsification.

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