'Rogue trader' faces preliminary charges

(CNN) -- French prosecutors announced Monday that they had filed preliminary charges against the rogue trader who allegedly carried out a $7.2 billion fraud at French bank Societe Generale.

Jerome Kerviel has been charged with unauthorized computer activity and "breach of trust," said Christian Charriere-Bournazel, his attorney.

Charriere-Bournazel did not reveal the whereabouts of Kerviel, who was released from custody.

Earlier Monday prosecutors said that they also planned to charge Kerviel with fraud -- which carries a maximum of seven years in prison and a fine of $1.1 million -- and misrepresentation.

In early trading Monday, shares in Societe Generale plunged more than 7.0 percent as leading brokerages downgraded the bank's outlook, but recovered to be only 3.2 percent down.

Paris Prosecutor Jean-Claude Marin briefed reporters about the charges four days after Societe Generale announced the fraud scandal, the largest ever by an individual in the securities business.

Police have been questioning the trader, 31-year-old Jerome Kerviel, since Friday.

Marin went before a Paris judge Monday to request the charges, because under French law, a suspect may be held for only 48 hours without charge. That deadline expired for Kerviel on Monday afternoon.

The prosecutor said he would also ask the judge to grant Kerviel's continued detention to allow police more time to question him.

In announcing the stunning fraud last week, Societe Generale said Kerviel alone was responsible. Marin said Monday that investigators and prosecutors support that theory, though they continue to search for any accomplices Kerviel may have had.

"The investigation shows very clearly at the moment that Mr. Kerviel acted alone and the investigation has not demonstrated any complicity," Marin told reporters.

In questioning so far, Marin said, Kerviel had been cooperative and had admitted exceeding his credit limit in order to make fraudulent transactions involving European index futures.

"I exploded my credit line," Marin quoted Kerviel as saying.

But Kerviel also defended himself, pointing out to police that in 2007, the bank felt he was doing such a good job that it offered him a $440,000 bonus. The bank discovered Kerviel's fraud before paying the bonus.

Kerviel told investigators that his actions were no different to those of other traders -- the only difference with him is that he was caught.

Both Marin and Societe Generale say they don't believe Kerviel profited from his alleged crime, but was merely playing with the markets and got in too deep.

Investigators searched Kerviel's apartment in an upscale Paris suburb Friday and carried off a briefcase and other material. Financial investigators also searched the headquarters of Societe Generale.

Marin is acting on a legal complaint filed by the bank against Kerviel. A second legal complaint, filed by the bank's shareholders, seeks to find out what role Societe General's role is in the fraud. E-mail to a friend

CNN'S Jim Bittermann and producer Niki Cook contributed to this report.

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