Tags: jon corzine | barred | 5 million | mf global | collapse

Jon Corzine Barred, Ordered to Pay $5M in MF Global's Collapse

Image: Jon Corzine Barred, Ordered to Pay $5M in MF Global's Collapse

Jon Corzine testifies during 2011 congressional hearing on MF Global collapse. (Alex Wong/Getty Images)

 

By    |   Friday, 06 Jan 2017 10:15 AM

Jon Corzine, Democratic politician turned investment firm CEO, has been barred by the Commodity Futures Trading Commission and ordered to pay $5 million in connection with the 2011 collapse of MF Global.

Corzine, a former U.S. senator (2001-2006) and New Jersey governor (2006-2010), was penalized for his role in MF Global's unlawful use of almost $1 billion in customer funds, said a commission statement.

Corzine was MF Global's chief executive officer at the time. In the 1990s was a top executive for Goldman Sachs Group.

The order, issued by Judge Victor Marrero in U.S. District Court for the Southern District of New York, also imposed a $500,000 penalty against Edith O'Brien, MF Global's former assistant treasurer. The order cited O'Brien for "aiding and abetting MF Global's unlawful use of customer funds."

The order prevents Corzine from taking a position in the future as a "principal, agent, officer, director, or employee of a Futures Commission Merchant and that he will never register with the CFTC in any capacity."

Regulators filed a lawsuit after the collapse of MF Global in 2011 and the settlement with Corzine brings to an end the major part of litigation against the former brokerage, said the Wall Street Journal.

Corzine said he accepted his role in the brokerage's failure and was pleased that a settlement was reached.

"I am eager to move forward and plan to spend my time focused on issues that have always been important in my life: my family, community and philanthropic causes, and markets," Corzine said in a statement, per the Journal.

In 2013, U.S. Bankruptcy Judge Martin Glenn announced a deal in which 26,000 former MF Global customers were supposed to recover money lost in the collapse, noted National Public Radio.

Bloomberg reported that MF Global Holdings Ltd. filed for bankruptcy on Oct. 31, 2011, after a wrong-way $6.3 billion bet on bonds of some of Europe's most indebted nations. More than $1.6 billion in customer funds that should have been segregated were missing at the time.

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Jon Corzine, Democratic politician turned investment firm CEO, has been barred by the Commodity Futures Trading Commission and ordered to pay $5 million in connection with the 2011 collapse of MF Global.
jon corzine, barred, 5 million, mf global, collapse
360
2017-15-06
Friday, 06 Jan 2017 10:15 AM
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