Kerviel Case Leads to Fraud Probe Over SocGen Tax Credits

French authorities stepped up a probe into whether the state unlawfully granted a 2.2 billion-euro ($2.5 billion) tax credit to Societe Generale SA after <-bsp-person state="{"_id":"00000172-bc98-d455-affb-fe9a64220001","_type":"00000160-6f41-dae1-adf0-6ff519590003"}">Jerome Kerviel caused a record trading loss.

Paris prosecutors have tasked an investigative judge with wider powers to continue a probe into whether the deferred tax credit should have been awarded to SocGen and the role of individual officials responsible for the decision, according to David Koubbi, a lawyer for plaintiff anti-corruption group Anticor.

Only companies that fell victim to fraud and bore no responsibility can deduct the resulting losses from their taxable result, according to ...