Tags: MF | Global | Corzine | transfer

MF Global Executive: Corzine Ordered $200 Million Transfer

Friday, 23 Mar 2012 07:09 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
A former MF Global executive is contradicting testimony from Jon Corzine, saying the former senator ordered the transfer of $200 million last fall out of a customer account days before the firm collapsed, according to an email obtained by congressional investigators.

Edith O'Brien, the former assistant treasurer, says Corzine ordered the money shifted to one of the firm's bank accounts overseas on Oct. 28 to cover an overdraft, according to a memo that cited the e-mail.

The email noted that the transfer was made "per JC's direct instructions."

MF Global filed for bankruptcy protection on Oct. 31. The firm failed because of a disastrous bet on European debt. About $1.6 billion of customers' money hasn't been recovered.

A House Financial Services subcommittee released the memo Friday in advance of a hearing Wednesday. O'Brien has been subpoenaed to testify. The Associated Press could not reach her for comment.

In December, Corzine told the panel: "I did not instruct anyone to lend customer funds to MF Global or any of its affiliates." Corzine also told the subcommittee he didn't know about "the use of customer funds on any loan or transfer."

And Corzine told a Senate panel two days earlier: "I never gave any instruction to anyone at MF Global to misuse customer funds."

A representative for Corzine didn't immediately return a telephone call seeking comment.

Client money is required by law to be held separately from a brokerage firm's cash to protect investors in case a firm fails. If MF Global misused client money, it would violate a fundamental investor protection for people who trade options and futures.

Many lawmakers have heard from farmers, ranchers and small business owners in their states who are missing money that was deposited with the firm. Agricultural businesses use brokerage firms like MF Global to help reduce their risks in an industry vulnerable to swings in oil, corn and other commodity prices.

Corzine, a former New Jersey governor and U.S. senator from the state, led MF Global until early November. He testified before three congressional panels in December. He said he didn't become aware of the shortfall in customer money until hours before MF Global's bankruptcy filing.

No one has been charged in the MF Global case. In addition to Congress, federal regulators and a federal grand jury in Chicago are investigating.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Prosecutor: White House Intruder Had 800 Rounds of Ammunition in Car

Monday, 22 Sep 2014 15:39 PM

The decorated Iraq war veteran who scaled a fence on Friday night and got into the White House had over 800 rounds of am . . .

Cartel Threats Force Cancellation of Border Protest Convoy

Monday, 22 Sep 2014 15:18 PM

A planned protest to block entry by illegal migrants along the Southwest border has been cancelled because protest organ . . .

White House: Radicalized Americans Investigated After Returning to US

Monday, 22 Sep 2014 14:56 PM

The FBI is conducting an active investigation into some of the 100 Americans who went to the Middle East to join up with . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved