And so it begins...
This afternoon the CFTC charged Jon Corzine and fellow MF Global employee Edith O'Brien with mismanaging almost $1 billion in customer firms as the firm collapsed in the fall of 2011.
The regulator alleges that the firm illegally (in its capacity as a broker) used customer funds to cover its own proprietary trades.
Check out excerpts from the complaint here.
In response, Corzine's lawyer, Andy Levander, has released a statement saying that the allegations are "meritless."
Check it out below:
This is an unprecedented lawsuit based on meritless allegations that Mr. Corzine failed to supervise an experienced back office professional who was located in a different city and who did not report to Mr. Corzine or even to anyone who reported to Mr. Corzine.
After 20 months of thorough investigations by the Department of Justice, two bankruptcy trustees, and the CFTC, no evidence has been found that contradicts Mr. Corzine’s sworn testimony before Congress.
Mr. Corzine did nothing wrong, and we look forward to vindicating him in court.
We look forward to watching.
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