The following article is from the National Association of Wheat Growers’ newsletter:
Executives from MF Global will likely not face criminal charges stemming from the investigation into the company’s bankruptcy, despite having lost more than $1 billion in customer funds. News reports out this week indicate that after 10 months of investigations, authorities are convinced that it was chaos and poor risk controls that caused the loss of protected funds, not fraud. However, MF Global is still facing legal action as bankruptcy trustee James Giddens has agreed to assist lawyers in suits against former chief executive Jon Corzine for failure to take proper care of customer’s money. In addition, regulators may still file civil enforcement actions, which could potentially cost Corzine millions of dollars and ban him from working on Wall Street in the future.
Posted by Haylie Shipp