Another Man Held in $7B SocGen Rogue Trading Case
Another person is being held for questioning in connection with the $7 billion-plus rogue trading scandal at Société Générale, potentially contradicting the bank’s earlier explanation that the initial suspect, Jerome Kerviel, acted alone.
Meanwhile, Kerviel was taken into custody after a Paris appeals court revoked his bail at a court hearing today, reports Agence France-Presse.
“I am coming out alone. Jerome Kerviel has gone to jail. I don’t understand this decision. I will file a new appeal first thing Monday morning,” said his lawyer, Elisabeth Meyer, after the hearing.
A court spokeswoman said the court acted to prevent Kerviel from departing the jurisdiction and “avoid contact with potential accomplices,” reports the Wall Street Journal (sub. req.).
“Although SocGen has been faulted for lax oversight of Kerviel’s trading, until now there had been no evidence anyone helped him carry out the tens of billions of dollars worth of unauthorized trades he has admitted making since 2005,” writes Business Week. “Kerviel told investigators he acted alone, and SocGen said its preliminary inquiries found no evidence of accomplices.”
The man reportedly being held for questioning, Moussa Bakir, 32, is an employee of a Paris brokerage, Newedge, that formerly was known as Fimat. It is affilated with SocGen and processed many of Kerviel’s trades, according to Business Week. Bakir allegedly was in frequent contact with Kerviel and reportedly said, in a Nov. 30 e-mail to him, “You haven’t done anything illegal in terms of the law.”
Prior coverage:
ABAJournal.com: “Record $7B Rogue Trader Fraud Alleged at French Bank”
ABAJournal.com: “Bank’s Loss of $7.2B Could Mean Big Bucks for Rogue Trader”
ABAJournal.com: “Alleged $7B Fraud Brings Big Case to French Boutique”
