The Commodity Futures Trading Commission is expected to approve a civil suit against Obama bundler and former New Jersey Democratic Senator Jon Corzine later this week for his involvement in the downfall of the brokerage firm MF Global.
The New York Times reports:
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In a rare move against a Wall Street executive, the agency has informed Mr. Corzine’s lawyers that it aims to file the civil case without offering him the opportunity to settle, setting up a legal battle that could drag on for years.
Without directly linking Mr. Corzine to the disappearance of more than $1 billion in customer money, the trading commission will probably blame the chief executive for failing to prevent the breach at a lower rung of the firm, the law enforcement officials said. If found liable, he could face millions of dollars in fines and possibly a ban from trading commodities, jeopardizing his future on Wall Street.
Corzine maintains a wide network of Washington connections and deep ties to President Barack Obama, for whom he raised over $500,000 in the 2012 election:
Obama deemed Corzine his "Wall Street guy."
Corzine’s close ties to Attorney General Eric Holder have come under scrutiny during the ongoing investigation into Corzine’s connection to the MF Global collapse.
Despite claims that he simply doesn’t know where the $1.2 billion in missing customer funds went, MF Global treasurer Edith O’Brien revealed Corzine had knowledge and gave direct instructions to transfer $200 million in customer funds three days prior to the firm’s collapse.
Corzine raked in $8.4 million before resigning at MF Global and shortly after the company declared bankruptcy.
The case is expected to be "a legal battle that could drag on for years."