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Kerviel's sentence upheld

October 24, 2012

A court in France has upheld the jail term and 4.9 billion euro ($6.4 billion) fine given to Jerome Kerviel for a fraud case that nearly toppled France's Societe Generale bank in 2008.

https://p.dw.com/p/16VeS
Former Societe Generale trader Jerome Kerviel (L) and his lawyer David Koubbi (R) arrive at the Paris court for the verdict in his appeal trial October 24, 2012. Kerviel, the man behind France's biggest rogue-trading scandal, finds out today whether he is heading to prison or walking free after his last court appeal in a four-year battle against former employer Societe Generale. Former trader Kerviel submitted a final attempt in June to be acquitted and avoid a three-year jail sentence handed down in 2010 for his role in taking huge, risky bets that cost SocGen 4.9 billion euros ($6.4 billion) to unwind and slammed the French bank's reputation. REUTERS/Gonzalo Fuentes (FRANCE - Tags: BUSINESS CRIME LAW TPX IMAGES OF THE DAY)
Image: Reuters

The Court of Appeals in Paris rejected Kerviel's appeal on Wednesday, saying the five-year sentence - two of which had been suspended - would stand, and the money Kerviel (pictured above on the left) cost the bank must be repaid.

"Jerome Kerviel was the sole creator, inventor and user of a fraudulent system that caused these damages to Societe Generale," the court's written ruling said.

David Koubbi, Kerviel's lawyer (pictured above on the right), said the decision was an "absolutely appalling injustice," and added that Kerviel may look to take the case one step further to France's highest court, the Court of Cassation.

Kerviel's original conviction in 2010 was for breach of trust, forgery, and putting fraudulent data into Societe Generale's computer network in order to facilitate risky trades. Although he admitted the dodgy trades took place, Kerviel has maintained that the bank knew of his activities. Societe Generale denies that claim.

While the appeal was pending, Kerviel remained a free man, and was not immediately taken to jail after the court's verdict on Wednesday.

mz/hc (Reuters, AFP, dpa)