Corzine asks for MF Global lawsuit to be dropped

Jon Corzine

Jon Corzine, former chief executive officer of bankrupt MF Global Holdings Ltd., asked that a lawsuit against him by the Commodity Futures Trading Commission be dismissed.

Bloomberg news reports that the CFTC sued Corzine in June for failing to oversee the brokerage company properly while it spiraled toward failure in 2011 as $1.6 billion in customer funds went missing.

After 'exhaustive investigations lasting 19 months', the CFTC hasn’t produced evidence to support its claims, Corzine said in a filing Tuesday in federal court in New York.

The CFTC’s complaint 'relies on irrelevant allegations calculated to sully Mr. Corzine’s character, as well as rambling hindsight criticisms of complex management decisions, many of which were made during times of extreme stress', Corzine said in the filing.

The CFTC alleges Corzine did nothing about inadequate controls over misuse of customer funds, that he was aware of the New York-based firm’s extreme shortage of cash and that he didn’t ask any questions about where the money was coming from to make transfers he ordered.

He also said he didn’t believe anything he said could reasonably have been interpreted as an instruction to misuse customer funds.

Hit the link below to access the complete Bloomberg article:

Corzine Seeks Dismissal of CFTC Lawsuit Over MF Global

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