Commodity Futures Trading Commission Sues Former N.J. Gov. Jon Corzine
WASHINGTON (CBSNewYork/AP) — Federal regulators are accusing former New Jersey Gov. 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 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.
Corzine has disputed the allegations by the CFTC, which regulated MF Global.
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.
Check Out These Other Stories From CBSNewYork.com:
- Long Island Cabs Offer Free Rides To Students On Prom Night
- NY Attorney General To Submit Broad Ethics Reforms Bill
- NYC Judge Hears Arguments On The Rights Of 2 Chimpanzees
- Charges Against FIFA Officials Announced In Brooklyn Federal Court
(TM and © Copyright 2013 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2013 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)