US Senators Urge Justice Department To Prosecute Any MF Global Wrongdoers

MF Global Fires Brokers Still

17 US Senators have urged the Justice Department to 'use every legal resource available' should its ongoing investigation into the collapse of MF Global uncover wrongdoing.

The senators wrote to US Attorney General Eric Holder:

'We are writing to emphasize the importance of a comprehensive and exhaustive investigation into the actions of MF Global executives regarding the potentially illegal misappropriation of funds from the segregated accounts of its commodity customers. If the Department's ongoing investigation uncovers illegal actions, criminal prosecution should be pusued without hestitation. In order to get to the bottom of this, we urge federal agents to use every legal resource available.

In the wake of the MF Global bankruptcy proceedings and the disclosure that hundreds of millions of client funds were completely unaccounted for, tens of thousands of farmers, grain elevators and others across the country have faced the real possibility that they would not be made whole on their accounts. This happened despite federal regulations that require collateral equal in value to the customer investments to remain in the customer segregated account at all times. If credible evidence of illegalities is found by the investigation, significant resources should be utilized to prosecute those responsible.

We understand that criminal cases involving complex financial transactions are sometimes difficult to prove beyond a reasonable doubt. However, tens of thousands of American farmers have seen their customer accounts raided by MF Global to the tune of hundreds of millions of dollars. The need for extraordinary effort should not discourage the Department of Justice from pursuing this case to the full extent of the law.

We believe that justice must be brought to this issue to send a message to Wall Street that the trust individual investors place in these firms must always be returned with lawful, conscientious and honest management of client funds. Thank you for your consideration'.

The letter was signed by Senators:

Max Baucus

John Thune

Ben Nelson

Charles Grassley

Kent Conrad

Sherrod Brown

Scott Brown

John Barrasso

Jon Tester

Roy Blunt

Amy Klobuchar

Mark Kirk

Mike Johanns

Johnny Isakson

Daniel Coats

John Hoeven

Tim Johnson

 

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