Former N.J. Gov. and Major Dem Bundler Sued for Alleged Role in Hedge Fund Collapse, Missing Cash
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Former N.J. Gov. and Major Dem Bundler Sued for Alleged Role in Hedge Fund Collapse, Missing Cash

Former N.J. Gov. and Major Dem Bundler Sued for Alleged Role in Hedge Fund Collapse, Missing Cash

Jun. 28, 2013

Becket Adams

Then Senator Jon Corzine (D-NJ)

Then Senator Jon Corzine (D-NJ) (Photo credit: Wikipedia)

WASHINGTON (AP) — Federal regulators are accusing former New Jersey Governor Jon Corzine of failing to properly manage MF Global, which misused customer funds before its 2011 collapse.

A civil lawsuit filed Thursday by the Commodity Futures Trading Commission seeks to ban Corzine from trading in the futures market and demands he pay unspecified penalties.

The lawsuit said Corzine bore responsibility for MF Global’s unlawful acts because he directly or indirectly controlled the company and its holdings and “either did not act in good faith or knowingly induced these violations.”

“He also failed to supervise diligently the activities of MF Global’s officers, employees and agents.

Corzine, a major fundraiser for Democrat campaigns, has disputed the allegations by the CFTC, which regulated MF Global.

The regulator also filed civil charges against Edith O’Brien, the firm’s former assistant treasurer.

About $1.2 billion in customer funds disappeared when the firm collapsed. Nearly 90 percent of the money has been recovered for U.S. customers of the firm and around 18 percent for foreign customers.

via Former N.J. Gov. and Major Dem Bundler Sued for Alleged Role in Hedge Fund Collapse, Missing Cash | TheBlaze.com.

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