US agency sues former New Jersey Gov. Jon Corzine over failure of MF Global

US agency sues former New Jersey Gov. Jon Corzine over failure of MF Global

June 27th, 2013 by Associated Press in Local - Breaking News

WASHINGTON - 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 by the Commodity Futures Trading Commission seeks to ban Corzine from trading in the futures market and demands he pay unspecified penalties. The regulator also filed civil charges against Edith O'Brien, the firm's former assistant treasurer.

About $1.2 billion in customer funds disappeared. Most of the money has been returned. MF Global has also agreed to pay a $100 million penalty as part of a settlement.

Corzine has disputed the allegations by the CFTC, which regulated MF Global.

New York-based MF Global sought bankruptcy protection after a disastrous bet on European countries' debt. Its $41 billion bankruptcy was eighth-largest in U.S. history.