Feeds

Rogue trader's apprentice under investigation

'Complicit' in €4.9bn SocGen fraud

Next gen security for virtualised datacentres

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. ®

The essential guide to IT transformation

More from The Register

next story
Goog says patch⁵⁰ your Chrome
64-bit browser loads cat vids FIFTEEN PERCENT faster!
Chinese hackers spied on investigators of Flight MH370 - report
Classified data on flight's disappearance pinched
NIST to sysadmins: clean up your SSH mess
Too many keys, too badly managed
Attack flogged through shiny-clicky social media buttons
66,000 users popped by malicious Flash fudging add-on
New twist as rogue antivirus enters death throes
That's not the website you're looking for
ISIS terror fanatics invade Diaspora after Twitter blockade
Nothing we can do to stop them, says decentralized network
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.