Federal agency sues Corzine over failure of MF Global
Published June 27, 2013 | Associated Press
Federal regulators are accusing former New Jersey Governor Jon Corzine of failing to properly manage MF Global, which misused customer funds before its 2011 collapse.
A civil lawsuit by the Commodity Futures Trading Commission seeks to ban Corzine from trading in the futures market and demands he pay unspecified penalties.
The lawsuit said Corzine bore responsibility for MF Global's unlawful acts because he directly or indirectly controlled the company and its holdings and "either did not act in good faith or knowingly induced these violations."
"He also failed to supervise diligently the activities of MF Global's officers, employees and agents.
Corzine has disputed the allegations by the CFTC, which regulated MF Global.
The regulator also filed civil charges against Edith O'Brien, the firm's former assistant treasurer.
About $1.2 billion in customer funds disappeared. Most of the money has been returned. MF Global has also agreed to pay a $100 million penalty as part of a settlement.
New York-based MF Global sought bankruptcy protection after a disastrous bet on European countries' debt. Its $41 billion bankruptcy was eighth-largest in U.S. history.