Feeds

Rogue trader's apprentice under investigation

'Complicit' in €4.9bn SocGen fraud

Protecting against web application threats using SSL

The assistant of rogue trader Jerome Kerviel is being investigated for complicity in his former boss' trading scandal that cost one of France's largest banks billions of euros.

Thomas Mougard was charged Friday as an "assisted witness," in the case — a legal status for witnesses who may be implicated themselves.

He is accused of "knowingly helping Jerome Kerviel to record fictitious operations" at the bank in 2007 and early 2008. The filing gives officials times to investigate and later decide to drop charges or go trial.

The French bank Société Générale said it lost a staggering €4.9bn (£3.9bn, $7.6bn) when Kerviel manipulated the bank's trading systems to cover risky and unauthorized positions in the derivatives market.

Investigators have already filed preliminary charges against Kerviel for forgery, breach of trust and illegally accessing the bank's computers.

An internal investigation by SocGen released to the public in May said it found "signs of internal complicity" by Mougard.

Kerviel admits to gaming the system, but claims his managers knew of his dealings and never stopped him so long as he was making money for the bank. His lawyers assert that SocGen was in fact responsible for the colossal losses after higher-ups "took the decision to unwind Mr. Kerviel's positions as shares were tumbling on the world's markets in January."

Kerviel is presently free on bail pending trial. In April, he scored himself a new IT job as a computer consultant after the judge in his case changed the condition of his release so he could take the post. ®

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Infosec geniuses hack a Canon PRINTER and install DOOM
Internet of Stuff securo-cockups strike yet again
'Speargun' program is fantasy, says cable operator
We just might notice if you cut our cables
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
YouTube, Amazon and Yahoo! caught in malvertising mess
Cisco says 'Kyle and Stan' attack is spreading through compromised ad networks
Hackers pop Brazil newspaper to root home routers
Step One: try default passwords. Step Two: Repeat Step One until success
Greater dev access to iOS 8 will put us AT RISK from HACKERS
Knocking holes in Apple's walled garden could backfire, says securo-chap
Microsoft to patch ASP.NET mess even if you don't
We know what's good for you, because we made the mess says Redmond
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.