The Kerviel case has been in the news for a few years now. As a reminder, in 2008, Jérôme Kerviel, an employee within Société Générale, reportedly caused a major loss of nearly €4.9 billion for the latter. Société Générale then filed a complaint… Nearly 6 years later, the case is still not closed
A brief look back at the Kerviel case
In 2008, Jérôme Kerviel was sued by his employer (Société Générale), who named him responsible for the colossal loss of 4.9 billion suffered as a result of his actions. In October 2010, his guilt was found and he was convicted of breach of trust, forgery and use of forgeries, but also for fraudulent introduction of data into an automated system. In addition to 5 years in prison (including 2 years of suspended sentence), he was also ordered to repay Société Générale’s 4.9 billion losses. Jérôme Kerviel appeals against this judgment, but it is confirmed in 2012. The former trader then takes the case to the Court of Cassation. If the criminal conviction is upheld, he is no longer required to pay damages. In any case, the case is not over, as the civil aspect is still subject to a new procedure scheduled for the end of January 2016. But things don’t necessarily evolve as expected…Was there judicial corruption in the Kerviel case?
In the face of the many developments in the Kerviel case, many people wonder whether there has been judicial corruption. In any case, at the end of January 2016, the Versailles Court of Appeal should rule on the damages requested by Jérôme Kerviel’s former employer. Will the latter have to pay or not? It should be remembered that the amount requested is the highest ever requested in history.
Even if many were waiting to know how the case would finally end, the rest of the case still seems rather vague. After new information provided by the young man, the court was forced to suspend the new trial in question. These include the incriminating testimony of Nathalie Le Roy, an investigator with the Financial Brigade. As a reminder, after no longer being in charge of the case, Ms. Le Roy continued her investigation and recorded (illegally) the statements of Chantal de Leiris, former deputy prosecutor in the financial section of the Paris Public Prosecutor’s Office in charge of the case from 2012 to 2014. The latter is intended to confirm the fact that the general company was aware of Jérôme Kerviel’s shares.
Many questions are also indirectly asked about Société Générale’s interference in justice, the links between lawyers and the public prosecutor’s office. Jérôme Kerviel’s lawyer intends to make good use of this recording, believing that the public prosecutor and the general public adapt the rules of justice as they see fit. Therefore, he considers the registration to be entirely admissible. It remains to be seen how this fact will be able to be used in the context of the trial.
The latest news: the trial will be suspended for at least two months, to resume after 21 March 2016… To be continued.
Before making the same mistakes as Jérôme Kerviel, why not read our advice on investing in the stock market?