The Commodity Futures Trading Commission (CFTC) sued former MF Global Holdings Ltd. Chief Executive Officer Jon Corzine for failing to properly oversee the company as it spiraled toward bankruptcy in 2011. The regulator also sued MF Global's former assistant treasurer Edith O'Brien and said it reached a settlement with subsidiary MF Global Inc. to pay all funds due to customers and impose a $100 million penalty. That settlement is subject to court approval.
"Turning a profit is not the only job of the person at the top of a CFTC-regulated firm," CFTC Enforcement Director David Meister said in a statement on the regulator's website. "Particularly in times of crisis, the person in control, like the CEO here, must do what's necessary to prevent unlawful uses of customer money, so that customers' money is still there if and when the music stops."
MF Global's collapse led to billions of dollars in missing client funds at the broker dealer and the eighth-biggest bankruptcy in U.S. history.
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