Friday, September 23, 2016

Kerviel will have to pay one million euros in damages and interest to the Société générale – Challenges.fr

The Court of appeal of Versailles has brought to Friday 23 September from 4.9 billion to one million euros damages and interest owed by the ex-trader Jérôme Kerviel to Société Générale, his former employer. The Court stated, “Jérôme Kerviel partially responsible for the harm caused to Society in General”.

“The struggle continues” and the decision of the Court of appeal “gives me the energy to continue (the) fight”, responded promptly, the ex-trader, assailed by the journalists. “The Court has rendered for 99.98% of the sum due by Jérôme Kerviel, has welcomed his lawyer David Koubbi. One of the attorneys of Société Générale, Jean Veil, has welcomed a decision “satisfactory”. The judgment of the Court makes it, according to him, the decision is executable.

however, The Court has rejected the application of financial expertise claimed by the defence. She said in a press release to have “estimated that deficiencies in the organization and control mechanisms and security of the bank, identified in particular by the Green and the banking Commission, and also sanctioned by the latter, had a character of wrongdoing in the civil level”. These “deficiencies” have it, “contributed to the production of the damage, limiting the right to compensation of the Company General”.

The Court was therefore “sovereign appreciated the extent to which the right to compensation, the civil party was reduced, and fixed at one million euros, the amount of the damage put to the burden of Jérôme Kerviel”.

Already finally convicted in the criminal

The ex-trader, age 39, has already been finally convicted criminal to five years in prison, including two suspended, for maneuvers trading of fraudulent which resulted, in 2008, to 4.9 billion loss for the bank. The Court of cassation has confirmed in 2014, this conviction for abuse of trust, forgery and fraud. But she has broken the civilian component who saw him initially sentenced to reimburse these losses, the dizzying, arguing that the bank had failed in its mechanisms of control and was not entitled to full compensation.

After eight years of proceedings, at the hearing on 17 June, which saw the court of appeal retry this famous civilian component, the general counsel had pressed the stud. Société Générale has “committed civil wrongs, distinct and different nature of offences under criminal Jérôme Kerviel, who appear to be sufficient to lead to the total loss of its right to claim full compensation of its losses,” said Jean-Marie of Huy.

The magistrate has not, however, asked the financial expert claimed to body and cries by David Koubbi, lawyer of the defence. For the latter, a expertise would, however, “a historic chance to know what happened in this case.” “In this case, the justice went wrong”, but “now I want to finish”, “with a relaxed, for his rehabilitation,” said Me Koubbi to the AFP, the subject of an attempt at the same time in the course for a review of the trial.

The challenge is also tax

The Company General the means of course not of this ear. “It is not likely that the court of appeal of Versailles decided to deprive the bank of the damages”, wants to believe his lawyer, Jean Veil, recalling that the conviction of the ex-trader at the criminal is, it, final.

The bank had pointed to the June 17, have “always recognized the weaknesses and negligence” of its “control systems”. “But these are the fraudulent activities of Jérôme Kerviel who have put in failure”, according to the company.

If the court follows the prosecution, it will not just be a resounding defeat symbolic for the Society in General, that of all ways could only hope that his ex-employee will pay him the astronomical sum claimed.

The issue is also taxation. The banking giant has reached almost € 2.2 billion in the State in 2009 and 2010, under a tax regime granted to loss-making enterprises and to victims of fraud. But Bercy was suggested that this might be undermined if the justice épinglait failures in the control mechanisms.

A secret report addressed to the public prosecutor pointed out as early as may 2008 these tax issues, noting that the bank appeared to be “particularly interested in making known the existence of a fraud complex, making it ineffective systems of internal control.” This document “has been knowingly concealed”, had reacted to Me Koubbi at the time of disclosure, criticizing the “manoeuvres foul”.

Several complaints have been filed by Mr Kerviel in particular, relating in part on the dividend tax.

The Society in General she said this week in a press release have never obtained or requested of “special regime”. It also ensures that in the state, the case law “does not call into question the tax deductibility of the loss incurred by the actions of Jerome Kerviel”.

(With AFP)

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