French trader gets 3 years in jail, must pay $6.7B

[maddezmom]

Source: AP

Oct. 5, 2010, 4:14AM
Share Del.icio.usDiggTwitterYahoo! BuzzFacebookStumbleUponEmail Close 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.


Read more: http://www.chron.com/disp/story.mpl/ap/top/all/7232073.html

[Elmore Furth]

1. Ex-French Trader Must Pay $6.7 Billion for Fraud

Source: Associated Press

By THE ASSOCIATED PRESS
Published: October 5, 2010
Filed at 10:59 a.m. ET

PARIS (AP) — Former Societe Generale SA trader Jerome Kerviel was convicted on all counts Tuesday in one of history's biggest trading frauds, sentenced to three years in jail and ordered to pay the bank a mind-numbing €4.9 billion ($6.7 billion) in damages.

The ruling marked a huge victory for Societe Generale, one of France's most blue-blooded banks, which has worked to clean up its image and put in place tougher risk controls since the scandal broke in 2008.

The 33-year-old former futures index trader stood expressionless as the court convicted him of all charges and pronounced a five-year sentence 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 €50 billion between late 2007 and early 2008.

In a stunning blow, the court also ordered Kerviel to pay the bank back the €4.9 billion that it lost unwinding his complex positions in January 2008 — a punishment he would almost certainly be unable to pay. That sum marked the largest-ever alleged fraud by a single trader.


Read more: http://www.nytimes.com/aponline/2010/10/05/world/europe/AP-EU-France-Trader-on-Trial.html?_r=1&ref=news

[notesdev]

2. Hah

Good luck collecting that.

[fascisthunter]

3. WOW!

[Po_d Mainiac]

4. So factoring in for inflation

If the CB's of the world keep rushing towards the bottom, at the end of his 3 year sentence he will owe the equivalent of €1,266 in todays' money.
:shrug:

[Elmore Furth]

5. Ex-French Trader Must Pay $6.7 Billion for Fraud

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[slackmaster]

6. Unrec for badly written headline

The man is still French, is he not?

:nuke:

[wcollar]

7. French Trader gets 3 yrs, $6.7 Billion fine

Forget about bringing Sharia law to the U.S.! Lets see if we can bring over some French judges!
Bernie M. must be feeling pretty lucky about now.

[jgraz]

8. So THAT'S what it's like to live in a nation of laws.

Interesting...