Thursday, 30 June 2016
Last updated 3 hours ago
Oct 5 2010 | 2:01pm ET
Jérôme Kerviel, the rogue Société Générale trader who cooked up a phony hedge fund client to hide his €50 billion fraud, is going to jail.
Kerviel was sentenced to five years in prison—with two years suspended—following his conviction on forgery, computer abuse and breach of trust charges. He was also order to repay all €4.9 billion that SocGen lost on his unauthorized trades. According to French reports, at his current salary of €27,600 per year, it will take Kerviel more than 177,000 years to make good on that part of his sentence.
Kerviel's lawyer, Olivier Metzner, plans to appeal the decision.
The 33-year-old fraudster did not deny his crimes, but said that his unauthorized trading was no secret to his superiors, making them partially responsible. Kerviel testified that he was shocked at how easily he hid the trades, in one case telling a SocGen broker that a rugby-loving hedge fund trader named "Matt" was pushing him to make the risky trades.