Ex-SocGen Banker, Traders Facing Insider Trial Over €18 Million Gains

Core Viewpoint - A former Societe Generale banker and a group of traders are facing a criminal trial in France for allegedly profiting approximately €18 million ($21.1 million) from insider information related to a US stock about a decade ago [1]. Group 1: Individuals Involved - The trial will involve former SocGen managing director Stéphane Fima and traders Lucien Selce and Alexis Kuperfis, with court hearings tentatively scheduled to begin in February [2]. - Fima is accused of using a burner phone to share confidential information regarding Air Liquide SA's acquisition of Airgas Inc., with Selce allegedly making €9.9 million and Kuperfis about €4.4 million from the insider information [3]. Group 2: Legal Context and Implications - This trial marks the first significant insider trading case in France, part of a broader effort to combat insider trading alongside US and UK authorities [4]. - The case presents an opportunity for the Parquet National Financier to establish a precedent in a country that has not seen major insider trading convictions in years [4]. Group 3: Evidence and Investigation - Investigators conducted surprise inspections across France and relied on wiretaps of Fima's burner phone conversations as critical evidence, despite challenges to the wiretap's validity [6]. - French authorities utilized phone records to track the suspects' movements and uncover their use of disposable prepaid phones to evade detection [7]. Group 4: Additional Accusations - Other individuals, including Seligman, Mareuse, and Van Houtte de la Chaise, are also accused of profiting from the insider information, with respective gains of €3.3 million and €225,000 [8]. - Fima, Selce, and Seligman are involved in a separate criminal case concerning suspicious transactions related to CGG SA amid a takeover attempt by Technip SA [9].