Rogue trader's assistant charged over Sociétié Générale fraud

The assistant of the rogue trader at the centre of the £3.6bn fraud at French bank Sociétié Générale has been charged in connection with the fraud, according to a report from French newswire Agence France-Presse (AFP).

The assistant of the rogue trader at the centre of the £3.6bn fraud at French bank Sociétié Générale has been charged in connection with the fraud, according to a report from French newswire Agence France-Presse (AFP).

According to the report, Jerome Kervial's assistant, Thomas Mougard, was charged on Friday with complicity to introduce false data into a computer system.

Mougard will remain free pending trial.

The bank said Kervial had used other people's computer passwords as well as his experience of the controls placed on traders by the back office to make high-risk trades.

A French police report seen by AFP said Kervial had abused his bosses' trust and exploited holes in the bank's security system.

"The scale of the bank's financial prejudice can be explained by the fraudulent manoeuvres of a trader who... abused the trust of his hierarchy by taking advantage of its deficiencies and of the faults in the internal control system," the report concluded.

The Kervial case highlighted the failure of SocGen's anti-fraud systems and procedures, which has put at risk billions of pounds and the bank's reputation.




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