17/11/2009
Another fraud scandal at Société Générale
Agefi reports that internal controls at Société Générale have uncovered a fraud at SGAM Banque, a unit of Société Générale Asset Management. The fraud, involving false receipts for general expenses, runs to EUR1.8m. The perpetrator fo the fraud was immediately dismissed. Part of the money is reported to have been recovered, and no clients or providers suffered financial damage as a result of the case. The newspaper notes that the discovery further discredits the quality of first-level controls at the group, and puts SGAM Banque in the spotlight once again, after the entity was previously involved in heavy losses at the asset management unit of Société Générale. SGAM Banque was called in by SGAM AI, the alternative management affiliate of SGAM, to set up and manage the unit’s structured products.
