Prosecutors: Jail Kerviel For Four Years

Jun 25 2010 | 6:30am ET

Jérôme Kerviel, the rogue Société Générale trader who cooked up a phony hedge fund client to hide his €50 billion fraud, should spend four years in prison for his crimes, prosecutors said yesterday.

Kerviel was “a manipulator, a trickster, a liar who caused a worldwide trauma” and nearly €5 billion in losses for SocGen, the prosecutor, Jean-Michel Aldebert told a judge in Paris. “For him, fraud was a full-time job.”

Kerviel should also be fined, Aldebert said.

The 33-year-old is on trial for breach of trust, computer abuse and forgery. He does not deny his crimes, but said his unauthorized trading—which totaled as much as €50 billion—was no secret to his superiors, making them partially responsible. Kerviel’s attorney will make his closing statement today.

Kerviel testified that he was shocked at how easily he hid the trades. In one case, he told a SocGen broker that a rugby-loving hedge fund trader named “Matt” was pushing him to make the risky trades.

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    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…