Corzine Won’t Be Criminally Charged for MF Global Mismanagement

Jon Corzine testifies
Jon Corzine testifies on Capitol Hill in Washington in 2011 (AP)
• July 8, 2013 10:06 am


Jon Corzine, former governor of New Jersey and a major financial supporter of President Obama, will not be charged for MF Global’s mismanagement of $1.6 billion in customer funds leading up to the firm’s 2011 collapse. The New York Post reports:

"Jon Corzine will not be cuffed over MF Global’s improper handling of customers’ funds leading up to the commodity brokerage firm’s spectacular collapse in late 2011, The Post has learned. Federal investigators have found no evidence that the disgraced Wall Street titan broke the law… The Justice Department’s decision to drop the case is sure to come as a relief to Corzine, who has been widely blamed for MFG’s bankruptcy — as well as the misuse of some $1.6 billion in customers’ funds.

Despite being forced to testify in front of Congress concerning the case, Corzine remained one of Obama’s largest fundraisers, bundling at least $882,932 to the 2012 reelection campaign. MF Global employees, including executives, traders, and board members, gave $143,200 to the DNC and Obama’s reelection campaign before the firm’s collapse.

While criminal charges have been dropped against Corzine, civil charges by the Commodities Futures Trading Commission remain. The CFTC claims that customer funds were put together with the firm’s money immediately before bankruptcy. While Corzine told Congress that he had "no recollection whatsoever" of funds being transferred to the firm’s accounts, the CFTC contends they have a recording of Corzine admitting knowledge. According to the New York Post:

"Last week, Corzine was hit with civil charges by the Commodities Futures Trading Commission in connection with the illegal tapping of the funds, which were improperly co-mingled with the MFG’s house money in the firm’s final days… The CFTC lawsuit relied on recorded telephone conversations to support their allegation that Corzine was fully aware of the transfers. In one call, an employee told Corzine that some of the funds O’Brien transferred had not been returned, the lawsuit said. Corzine asked if O’Brien had received back ‘enough to be in compliance.’ The employee replied, ‘No.’"