Wednesday, October 6, 2010
French Rogue Trader, Jerome Kerviel, Convicted On All Counts; Must Pay $US6.7 Billion In Restitution
Former Societe General, SA trader, Jerome Kerviel, 33, of France, was convicted on all counts, including forgery, breach of trust and unauthorized computer use, for his role in what is described as "history's biggest rogue trading scandal." Kerviel was sentenced to 3 years in prison and also ordered to pay restitution to Societe General in the amount of 4.9 billion euros ($6.7 billion). Kerviel was originally arrested in January 2008 for covering up trading bets worth nearly euro50 billion between late 2007 and early 2008. The magnitude of Kerviel's rogue trading loss eclipse those of Barings Bank's Nick Leeson in Singapore ($1.3 billion in 1995) and Sumitomo's Yasuo Hamanaka in Tokyo ($2.6 billion in 1996).