French rogue trader ordered to pay back €5bn

| October 6, 2010 | 0 Comments

French rogue trader Jérôme Kerviel has been convicted of breach of trust, fabricating documents and illegally accessing computers at Société Générale - France’s second largest bank.

The scandal, which represented the biggest fraud investigation in banking history, saw Mr Kerviel jailed for three years and he has been ordered to pay back the €4.9 billion (£4.2 billion) he lost the bank.

The €4.9 billion represents the largest sum ever demanded from an individual by a French court.

Speaking of the conviction, 33-year-old Kerviel said: “I am crushed by the weight of the sentence.”

Speaking to Europe 1 radio, Mr Kerviel said he believes he is a “scapegoat” of the financial system.

Mr Kerviel’s lawyer, Olivier Metzner, said his client would appeal against the judgment and laid the blame with the French bank claiming bosses knew what he was up to.

The scandal actually came to light in early 2008, but the trader’s fraud began in late 2006.

Tags: Société Générale

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