Former SocGen rogue trader Kerviel makes fresh legal appeal

City A.M. Reporter
CONVICTED French rogue trader Jerome Kerviel yesterday launched a new legal salvo against his former bank, Societe Generale, accusing it of fraud and demanding that an independent expert examine how much money was lost in France’s biggest-ever trading scandal.

Kerviel filed a civil lawsuit against the bank in Paris, a week after an employment tribunal rejected his plea for a new expert inquiry to help overturn his dismissal.

Kerviel received a three-year prison sentence for unauthorised trades that caused losses put by SocGen at €4.9bn (£4.2bn), but is not in jail because he is waiting for the result of a final appeal.

The ex-trader maintains his bosses were aware of the trades, and argues in the new lawsuit that SocGen amplified the losses by unwinding positions held by three other traders.

“No legal expert has ever validated Societe Generale’s alleged losses,” Kerviel’s lawyer, David Koubbi, said in a statement. “It is now imperative that the court order an independent review that brings to light Societe Generale’s dealings, which do not conform to its status as victim.”

Koubbi said the €4.9bn the bank says it lost was a “fictitiously built” sum.

SocGen declined to comment.