Ex-Trader To Pay $6.8 Billion In Fraud Case
October 5, 2010
France (ChattahBox Crime News) – In a shocking case out of France, former Societe Generale trader Jerome Kerviel has been sentenced to three years in prison, and given a bill for $6.8 billion dollars.
Kerviel was convicted of using a scam process to bring huge funds into the banking institution, which he admitted. But, he said, his superiors were aware and supportive of his actions, benefiting far more than he had.
But a court found that SocGen had no knowledge or liability for his risky practices, letting them off the hook for more than a billion dollars in taxes that they would have been required to pay back.
“The accident we had has made us more aware… I think the bank will move on after today,” Alberto Valenzuela, deputy CEO of SocGen said.
But the verdict has been called unnecessarily harsh and ridiculous, given the enormous sum of money that is being asked; a sum that Kerviel will spend his whole life paying, and yet will never pay off.
It even more controversial because he did not benefit directly from the sums gathered in the fraud case, while SocGen gathered huge profits from his actions.
“Jerome is outraged … that the people who created him have been totally exonerated,” Olivier Metzner, his attorney, was quoted by ABC.
He was given a five year sentence, with two years suspended.