Ex-Societe Generale trader sentenced to 3 years over trading loss, must pay €4.9B ($6.7B)
By APTuesday, October 5, 2010
French trader gets 3 years in jail, must pay $6.7B
PARIS — A Paris court has convicted former trader Jerome Kerviel guilty of all charges in one of history’s biggest trading frauds, sentencing him to three years in prison and ordering him to repay Societe Generale SA the staggering euro4.9 billion ($6.72 billion) that the bank lost.
The 33-year-old former index futures trader stood expressionless as the court pronounced a five-year sentence on Tuesday — 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.
He maintained throughout the trial in June that the bank tolerated his massive risk-taking as long as it made money.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.
PARIS (AP) — A Paris court has found former trader Jerome Kerviel guilty of all charges in one of history’s biggest trading frauds, which cost one of France’s largest banks billions of euros.
The court did not immediately indicate a sentence for the 33-year-old former index futures trader at Societe Generale SA. He was facing up to five years prison and a euro375,000 ($513,000) fine.
Kerviel was found guilty Tuesday 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.
He maintained throughout the trial in June that the bank tolerated his massive risk-taking as long as it made money.
