News about people committing fraud and corruption on a large scale is frequently reported from many countries around the world. A significant number of people have become rich due to the fraud and corruption. In the meantime, we rarely hear the news about people who have become extremely poor due to fraud and corruption.
Frenchman Jerome Kerviel is also a person who has committed fraud and corruption on a large scale and got into trouble. All the fraud and corruption he committed were revealed in 2010. As a result, he was ordered to pay more than 7 billion dollars. Therefore, today he has become the most indebted person as well as the poorest person in the world.
Jerome Kerviel -gettyimages.com
Early stage of life
Jerome Kerviel was born on January 11, 1977 in Brittany, France. His father, Charles, worked as a blacksmith, and his mother, Marie Josie, worked as a hairdresser. Jerome's childhood best friend was his older brother Olivier.
Both of them not only spent a lot of fun time when they were children but also took great interest in education. As a result, both of them were able to complete their school education well.
Pursuing higher education
After successfully completing his schooling, Jerome's only wish was to pursue higher education and successfully complete a degree. Otherwise, he was convinced that it would be difficult to get a higher job.
By that time, organizing and controlling the financial market had become a recognized profession. Jerome was also eager to enter the profession. As such, he obtained a degree in finance from the University of Nantes in France. Not stopping there, Jerome also obtained a master's degree in finance from Lumiere University in France.
Lumière University, France – welcome.univ-lyon2.fr
Jerome did very well in his studies at Lumiere University. Therefore, he was able to win the hearts of the teachers. Andre Tiran, who was Jerome's teacher, had told a story like this about him.
"Jerome Kerviel is a very hard working student in his university studies. Therefore, he was able to achieve very high results in the past. He has a bright future if he continues to be successful in his education.
It is clear from Andre Tiran's statement that Jerome had a need to study well and get a higher job. Because of his passion, Jerome was able to complete 2 degrees in finance by the age of 23.
Lumiere University Dr. Andre Tiran – lyonmag.com
First job
After completing 2 degrees in finance, Jerome's only goal was to find a high-level job. So he applied for several job vacancies. He attended several of their interviews. Among them, he passed the interview of the financial company called Societe Generale. Consequently, in the summer of 2000, he began his duties as an employee of Societe Generale.
From the day Jerome entered the job, he worked very diligently. At that time, Udaviya, who had a good knowledge of information technology and computer software, got the opportunity to work in a high-level job in the financial sector. As such, Jerome also studied computer software and information technology well. It is to pave the way to reach a higher quality of life in the future.
Societe Generale Company – Vertical.com
How to rise from the job due to hard work
Jerome lived in an urban area called Pont l'Abbé. Thierry Mavik was the mayor of the municipality in that area. He became a very good friend of Jerome at that time. As such, Jerome received an invitation from him to contest the Pont l'Abbé municipal elections in 2001. Jerome, who competed for that election, could not win. After that, Jerome, who stayed away from politics, tried to work hard.
There, on some days, he was engaged in duties for 18 hours. Even the top officials of the financial company called Societe Generale were impressed by this young man due to his continuous dedication to duty. As a result, Jerome was promoted in 2005.
There he was assigned to the Delta One production team of Societe Generale. Since it was the busiest department in the company, Jerome had to engage in his duties with even more dedication.
Jerome Kerviel in the office – Vertical.com
Being greedy for money and going astray
After getting the new job, Jerome's annual salary increased to $66,000. He also received bonuses. So he received money in his hand. When the money was received, the needs increased more and more. At that stage, he also entered married life. So Jerome thought of ways to raise more money.
There, Jerome thought that he could make a huge profit by making fraudulent transactions related to the stock market and fraudulently selling securities. He received 500,000 euros from such a fraudulent stock market transaction in July 2007 in connection with Germany's Allianz insurance company. Due to the enormous amount received, Jerome decided to continue making money by making fraudulent transactions.
Allianz Company in Germany – Vertical.com
Making large amounts of money from fraudulent transactions
Jerome had a very good knowledge of computer software and information technology. As such, he was able to sneak into the information systems of banks and financial institutions and collect important data. It made it easy for him to do fraudulent transactions. He made money by forging securities and deceiving customers.
Jerome was able to fraudulently earn more than 7 billion dollars in assets in a few months through fake trading transactions. Due to his keen intelligence, the ability to deal with risks without fear, high computer literacy and good knowledge of the financial sector, he was able to carry out such fraudulent trade transactions easily.
Getting caught in the law
By the end of 2007, a severe economic crisis had been created in many countries of the world. As a result, the stock market collapsed in some countries. Tokyo stock market by 24%, Paris stock market by 22%, London stock market by 21%, New York stock market by 21% can be mentioned as examples of that.
Some major financial institutions and even banks went bankrupt. Lehman Brothers, General Motors, Washington Mutual, CIT Group, First Merchant Bank, Roskilde Bank, Silver State Bank, Colonial Bank, Landsbanki, Parex Bank are some of the bankrupt banks and financial companies.
After the collapse of Lehman Brothers – Vertical.com
Societe Generale, a financial company, also felt the impact of the worldwide economic crisis at that time. As a result, the company continued to incur losses. As such, the company's leaders checked the transactions made in the previous year. It is to find out the reasons behind the loss of the company.
During the inspection, all transactions made by Jerome were revealed. It was January 19, 2008. The company then reported Jerome's fraudulent activities to the security forces. Security forces raided his house and found several other files related to the fake transactions. The security forces did not stop and arrested him and interrogated him at length.
Jerome Law Line – Vertical.com
5 years imprisonment after trial
Societe Generale filed a lawsuit against Jerome on January 26, 2008. It is under the terms of breach of trust, fraud, preparation of false documents, illegal access to the company's computer system. At the end of the nearly 5-month trial, Jerome was found guilty of all charges.
According to the judgment given on June 8, 2010, Jerome was sentenced to 5 years in prison. All his properties were also confiscated. In the end, he had to pay back the $7.2 billion he had fraudulently earned. In 2012, the Paris Court of Appeal reduced Jerome's prison sentence to 3 years.
Jerome during the trial – Vertical.com
Becoming the world's poorest man
After several years in prison, Jerome was released in late 2013. After getting freedom, he thought of living a good life. Currently, Jerome Lemaire is working as an IT consultant. According to reports, the total amount owed by Jerome is $6.7 billion. Therefore, he has become the poorest man in the world today.
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