Societe Generale trader Jerome Kerviel was charged Monday over the biggest fraud case in investment banking history, his lawyer said as the French bank was hit by insider trading allegations and a plunging share price.
The 31-year-old was placed under formal investigation for "breach of trust", "falsifying and using falsified documents" and "breaching IT controls access codes", before being released on bail, lawyer Elisabeth Meyer said.
Her colleague Christian Charriere-Bournazel said Kerviel, dismissed by Societe Generale over the loss of 4.9 billion euros (7.15 billion dollars), had "handed over an expired passport", which meant he could not leave country. However, investigating judges Renaud van Ryumbecke et Francoise Desset rejected prosecutor Jean-Claude Marin''s bid to charge Kerviel with the more serious crime of "attempted fraud" and to refuse him bail.
Kerviel is also formally prevented from communicating with Societe Generale employees - or working in any financial services capacity pending the outcome of the case.
"It''s a great victory," Meyer said of the trader being "freed" on bail, "but it''s only justice being done". Charriere-Bournazel added that prosecutors asked for "too much, with too much haste".
The prosecutor said Kerviel had admitted during two days of questioning that "he carried out a certain number of acts to conceal reckless positions on the markets", but did not try to profit personally from the financial deals.
"He wanted to be seen as an exceptional trader, an astute market player," said Marin, adding that he was attracted by the prospect of a 300,000 euro bonus. "He went beyond what he was authorised to do on the market, it is true, but he wasn''t trying to plunder the bank." Kerviel could face a seven-year jail term and a 750,000 euro fine if found guilty of fraud.
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