Remember the French rogue trader Jerome Kerviel?He cost his former employer Societe Generale over $6.11 billion when it was unveiled in 2008 that he had $62 billion in authorised positions that he was hiding with fake hedges.
SocGen took Kerviel to court, and he was found guilty of forgery, computer abuse and breach of trust in 2010, and sentenced to 3 years of prison plus a fine equal to the cost SocGen incurred while unwinding all his bad trades, according to Futures Mag.
But since the guilty verdict, Kerviel has remained out of the slammer through a series of appeals, and now he’s back in the hot seat so he can stay out of jail—Kerviel’s appeal trial started earlier this week.
His tactic this time? Kerviel doesn’t deny his bad trades, but he is saying everyone else at SocGen did it too! From Reuters—
Questioned by the presiding judge and SocGen’s lawyers over one of his hidden trades – a 5 billion-euro bet in March 2007 that the German stock market would fall – Kerviel told a Paris court that all his colleagues knew what he was doing and that hiding bets was widespread.
“Everyone did it…Everyone knew and saw what I was doing,” said Kerviel, who wore an open-necked light shirt and became increasingly animated during his testimony.
With the prospect of of three years in prison waiting for him, Kerviel probably figured he could afford to lose a few friends by throwing his former co-workers under the bus.