Jon Corzine has seen a boutique brokerage MF Global's his best hope readjust He has served as the height of the Occupy Wall Street Goldman Sachs.
Now, MF Global's bankruptcy. Corzine from the futures industry is facing a lifetime ban.
On Thursday, federal regulators sued Corzine, a one-time U.S. senator and governor of New Jersey. They claimed that he was responsible for the misuse of customer money, MF Global's CEO, collapsed in 2011.
In Manhattan, the Commodity Futures Trading Commission (CFTC) proposed civil Corzine to restrict trade, investment and asked him to pay the penalty of unknown capacity.
MF Global's legal costs, in violation of U.S. law, a few weeks ago through the use of customer funds to support its own trading business collapsed. Customer funds of about 120 million yuan, the company crashes disappear.
Corzine MF Global liable for illegal acts, because he controls the company and its holdings lawsuit, said: "neither acted in good faith or deliberate induction of these violations."
In a conference call with reporters, the U.S. Commodity Futures Trading Commission enforcement director David Meister said Corzine failed to take adequate measures to prevent the company from dipping into customer funds to stay afloat. "
MF Global has agreed to pay $ 100 million fine as part of the settlement announced Thursday. The money will come from the bankruptcy proceedings.
Corzine questioned, accused by the CFTC, MF Global is headquartered in New York regulation. He did so again on Thursday through his lawyer.
"Mr. Corzine did nothing wrong, and we look forward to his confession in court," attorney Andy Lai Wan Germany said in a statement.
Supervision MF Global bankruptcy, court-appointed trustee James Giddens, the so-called reconciliation and CFTC "appropriate." He said it would pay $ 100 million fine, the company's clients and creditors have received all claims.
CFTC also proposed civil charges, the company's former Assistant Treasurer Edith O'Brien. Last year, O'Brien was summoned to congressional hearings, in the final days of MF Global, what happened. She refused to answer questions, against self-incrimination invoked her Fifth Amendment rights.
O'Brien's lawyer did not immediately return a call seeking comment (Thursday).
The lawsuit seeks to prohibit Corzine and O'Brien trade commodities or any other investment companies regulated by the U.S. Commodity Futures Trading Commission. Corzine and O'Brien will be prohibited from any such investment transactions themselves. They can still be traded stocks and bonds.
Thursday's lawsuit is amazing because regulators have seldom receive personal and financial crisis era misdeeds. Instead, they are on the company's fines and penalties, often do not admit fault.
Nearly 90 percent belong to the company's U.S. clients' money was recovered. Many farmers, ranchers and business owners to use futures contracts through MF Global to hedge its exposure to fluctuations in the price of crops. Futures contracts allow other groups of the price at some point in the future to buy or sell something - corn, say, or gold - it was agreed.
CFTC not appear in court, Corzine personally authorized the use of the customer's money, said Anthony Sabino 萨比诺萨比诺 New York law firm, specializing in white collar crime. Senior managers can bear the "failure to maintain internal control" or "failure to supervise, Sabino said."
According to the 2002 anti-corporate fraud law - Corzine co-wrote as a U.S. senator - a public company CEO must personally certify their company's financial statements for accuracy.
"When" Titanic "to go, you do not blame the chef, you do not blame the guy in the room, Sabino said." "You blame the captain. Corzine ship called at MF Global is the captain."
CFTC for Corzine and MF Global's "extremely serious cases," Sabino said.
Former federal prosecutor Robert Mintz, forecasting Corzine and the CFTC final solution, but not before a protracted battle.
CFTC sued the defendant for such a major confidence signals, they have a strong case, he suggested.
"In this case a defeat, in such a high-profile settings, some of the costs, the agency's reputation," Mintz said, now in New Jersey McCarter English.
It is not clear how much money Corzine is worth it. He spent about $ 1 million, his wealth, won the U.S. Senate seat and governor of New Jersey. In 2005, the last year, he was a U.S. senator, he estimated value of between $ 1.25 million yuan and 175 million yuan.
MF Global filed for bankruptcy protection after the 2011 disastrous bet on European countries' debt. Corzine's leadership, the company bet $ $ 6.3 billion in Italy, Spain and other countries deeply disturbed bonds issued by the financial system. The value of these bonds before the crash a few weeks, MF Global's failure fears intensified that some European countries may default.
The company's $ 4.1 billion worth of bankruptcy is the eighth largest in U.S. history. This is from the end of the 2008 financial crisis after the collapse of the first Wall Street firm. Over the years, critics have complained that regulators have not actively seek greater financial enterprises, their high-risk bets, almost overthrew the financial system.
Corzine, 66 years old, was a Wall Street powerhouse Goldman Sachs CEO before entering politics in 2000. He served as United States Senator from New Jersey governor and later. After he lost his bid for re-election in 2009 Gov. Chris Christie at MF Global in March 2010 for the highest office.
MF Global is a small commodity broker Corzine arrival. His vision was to transform into a full-scale investment bank, Goldman Sachs and similar companies. CFTC's lawsuit said he tried to do so aggressive trading strategies to generate revenue.
Planning for some time, even if the company's investment in more and more dangerous, the lawsuit alleges. In the second half of 2011, its cash flow and capital investments on the heavy pressure. Lawsuit alleges, in October 2011, sources of cash dried up.
Corzine and other employees communicate with each other via e-mail, and sometimes recorded telephone lines, the company's "grim situation," the lawsuit said.
It said that the parent company, MF Global Holdings Ltd., a chief financial officer and treasurer told another employee October 6, 2011 recorded conversation, said: "We must tell Jon, enough is enough and we need to bring keys away from him. "
Corzine "contemptuous nickname global manager" Gravedigger ", said:" The lawsuit
Corzine stepped down after a few days, the company in November 2011 MF Global filed for bankruptcy protection chief.
MF Global's crash report, by the House panel and the two court-appointed trustee, most of the blame Corzine. It said that his adventure strategy leads to failure.
MF Global's shareholders sued Corzine and other senior management staff. Investors say they lost about 5.85 million yuan in just one week the company foundered. They accused MF Global company making false and misleading statements about the company's financial strength.
Giddens, trustee, also joined MF Global's customers Corzine and other senior management personnel proceedings.
Corzine three House and Senate committee hearing to testify later, in December 2011 Congress summoned him. This is a rare sight in Washington, a former member of parliament called former colleagues to testify publicly potential violations.
Corzine's testimony to meet Parliament or MF Global customers who lost money to provide it. However, his explanation would be difficult to refute, legal experts said.
He said he never intended to "misuse" client money or order anyone to do so. Corzine also rejected an assertion, he knows the customer's money may have been transferred to a European Union before the collapse of MF Global.
O'Brien, the former assistant treasurer, was summoned she sent an e-mail, it seems contradictory testimony about Corzine last year to testify at a hearing. Email Corzine said ordered transferred to cover the customer's money in the company's bank account overdraft in London.
"In the lawyer's opinion," she told Congress, "I respectfully refuse to answer based on my constitutional rights."
 



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