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FACTBOX: Legal procedure in SocGen fraud case

Sat Jan 26, 2008 1:29pm EST

(Reuters) - French police on Saturday questioned Jerome Kerviel, the 31-year-old dealer blamed for building up huge illicit trades at Societe Generale that cost the bank some $7 billion euros to unwind.

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The legal investigation could be long and complex. Here are some of the issues:

CUSTODY

Kerviel was taken into custody at the headquarters of the French finance police early Saturday afternoon.

He can be held for an initial 24 hours of questioning. Prosecutors can then ask for an additional 24 hours at which point they must decide whether to put him under official investigation, opening the way for potential charges, or else release him without pressing any charges.

While he is in custody he will be questioned without a lawyer present.

If he is placed under official investigation, magistrates could decide to continue to arrest him, or else free him under judicial control pending further inquiries.

POSSIBLE CHARGES

Societe Generale has filed a complaint against Kerviel based on three main charges -- fraudulent falsification of banking records, use of these fraudulent records and computer fraud.

A lawyer representing small SocGen shareholders filed a separate complaint for fraud, breach of trust, fraudulent falsification of banking records, use of these fraudulent records, complicity and possession of stolen goods.

The prosecutors will decide which, if any of these charges should be laid against Kerviel. Likewise, they could add additional charges.

MAXIMUM SENTENCES

The maximum sentence for fraud is 5 years in prison and a 375,000 euro ($549,500) fine.

The maximum sentence for fraudulent falsification of banking records and fraudulent use of such records is 3 years in prison and a 45,000 euro fine.

The maximum sentence for computer fraud is 2 years in prison and 30,000 euros.

(Reporting by Crispian Balmer and Thierry Leveque)
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