Former French Trader Jerome Kerviel Convicted in Massive Rogue Trade Scandal

[AP] Kerviel was found guilty on charges of forgery, breach of trust and unauthorized computer use for covering up bets worth nearly euro50 billion between late 2007 and early 2008. He was also banned for life from working in the financial industry.

There is no question that Kerviel, 33, is being used as a scapegoat for the entire industry. Not a single other individual faces charges in the case. The former CEO Daniel Bouton along with the bank's head of investment banking Jean-Pierre Mustier both conveniently retired when the scandal broke the headlines.

In the most stunning decision, the court ordered Kerviel to pay Societe Generale back the euro 4.9 billion that it lost unwinding his complex positions in January 2008. French media calculated that — based on his current salary of euro 2,300 ($3,150) a month as a computer consultant — it would take Kerviel 177,536 years to pay off the damages. [AP]

It's worth noting that none of the cases that have come before the courts in the U.S. relating to financial fraud have ever resulted in the perpetrators of these heinous crimes having to repay every single penny they stole from investors, nor the actual "cost" of those damages. With few exceptions, nearly every CEO, trader, and banker convicted of financial crimes has served a minimal sentence and walked away from prison a richer man due to gaping loopholes in the U.S. tax code that allow these men to transfer stolen funds into their spouse's or families name or into offshore accounts.