SocGen trader jailed by court

PARIS, France (CNN) -- Jerome Kerviel, the man at the center of a multi-billion trading scandal will be jailed while the investigation into his alleged fraud is conducted, his lawyer confirmed to CNN Friday.

Societe Generale announced trading losses last month of more than $7.2 billion, which it attributed to fraud by Kerviel.

A court in Paris decided Friday that Kerviel should be detained 11 days after he was released following questioning.

The latest development, confirmed to CNN by Kerviel's lawyer, Elizabeth Meyers, came the same day that French authorities announced they have a second trader in custody in connection with the huge losses.

The trader is an employee from Fimat, a subsidiary of Societe Generale, the prosecutor's office said.

Financial brigade officers from the Paris police took him into custody Thursday evening, the office said.

Kerviel, who traded European index futures, faces charges of abuse of confidence and illegal use of computers for his role in the scandal. He has not been charged with fraud.

Bank officials and the Paris prosecutor have previously said they believe Kerviel acted alone, though prosecutors have interviewed others, including mid-level managers, as part of their probe.

Kerviel, who could be sentenced to three years in prison, is free under judicial control while the case continues.

In his first public comment on the scandal earlier this week, Kerviel told French news agency Agence France Presse that he would not take all of the blame for the losses.

"I take my share of the responsibility but I will not be turned into a scapegoat of Societe Generale," he said in an interview from his attorney's office.

In addition to the criminal investigation, the bank and French government have launched their own inquiries into the huge trading losses, and Societe Generale shareholders have filed a lawsuit.

Adding to the alleged fraud, the bank also announced a nearly-$3 billion writedown because of the U.S. subprime mortgage crisis. E-mail to a friend

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