- Prison Planet.com - http://www.prisonplanet.com -
No One Will Charged With a Crime for the MF Global Collapse
Posted By yihan On August 16, 2012 @ 10:20 am In Tile,U.S. News | Comments Disabled
Thursday, August 16th, 2012
Authorities are winding down their criminal investigation of the failed brokarage firm, MF Global, and despite the lack of oversight and the loss of more than $1 billion  in customer funds, it now seems unlikely that anyone at the firm will face criminal charges.
The New York Times is reporting this morning  that after ten months of investigation by federal prosecutors, sources say there isn’t even enough evidence to charge any of the firm’s executives in a criminal probe. The company may have failed spectacularly when it came to oversight and risk management, but the losses cannot be chalked up to outright fraud.
The company placed a grossly outsized bet  (more than $6 billion worth) on the health of the European debt market last year and when it went south, the firm “borrowed” money from the accounts of its customers to try and salvage its own losses. Most of the blame for those trades fell on its CEO (and ex-New Jersey governor) Jon Corzine, and while his reputation and firm are ruined, it seems he will escape any legal sanction. He could still face massive civil lawsuits or fines from regulators who have a lower standard than a criminal prosecution, but jail isn’t in the cards.
Full story here. 
Article printed from Prison Planet.com: http://www.prisonplanet.com
URL to article: http://www.prisonplanet.com/no-one-will-charged-with-a-crime-for-the-mf-global-collapse.html
URLs in this post:
 Yahoo: http://news.yahoo.com/no-one-charged-crime-mf-global-collapse-111056124--finance.html?_esi=1
 $1 billion: http://www.theatlanticwire.com/business/2012/01/missing-12-billion-mf-global-money-probably-gone-good/48030/
 reporting this morning: http://dealbook.nytimes.com/2012/08/15/no-criminal-case-is-likely-in-loss-at-mf-global/?hp
 placed a grossly outsized bet: http://www.theatlanticwire.com/business/2011/10/how-jon-corzine-brought-his-firm-brink-collapse/44343/
 Was The “Collapse” Of MF Global Premeditated? A Conspiracy Theory Thought Experiment: http://www.prisonplanet.com/was-the-collapse-of-mf-global-premeditated-a-conspiracy-theory-thought-experiment.html
 MF Global trustee says $1.2 billion missing from company: http://www.prisonplanet.com/mf-global-trustee-says-1-2-billion-missing-from-company.html
 Corzine Ordered $200M Moved to JP Morgan Days Before MF Global Collapse: http://www.prisonplanet.com/corzine-ordered-200m-moved-to-jp-morgan-days-before-mf-global-collapse.html
 Someone Is Going To Jail For This: MF Global Caught Stealing Hundreds Of Millions From Customers?: http://www.prisonplanet.com/someone-is-going-to-jail-for-this-mf-global-caught-stealing-hundreds-of-millions-from-customers.html
 JPMorgan’s Potential Trading Loss Just Keeps Spiraling Higher: http://www.prisonplanet.com/jpmorgans-potential-trading-loss-just-keeps-spiraling-higher.html
Copyright © 2013 PrisonPlanet.com. All rights reserved.