Corzine Tells Judge That Due To Purchase Of 50,000 MF Global Shares Before Bankruptcy, He Must Acquit

Tyler Durden's picture




 

That former Goldman, New Jersey and MF Global head Jon Corzine is absolutely convinced he is innocent of any client money vaporization or wrongdoing, and that the definition of the phrase "to Corzine (verb- to trust your money to a prominent individual and to find it has mysteriously disappeared)" is absolutely arbitrary, is not news to anyone. And if not convinced then at least at a complete loss to what actually happened. One just had to recall all the "I don't recalls" the Honorable Corzine told congress during the makeshift kangaroo court hearing on MF Global's collapse (even if the final outcome was less than desired).  So it's only logical that the Honorable Corzine asked a federal judge to "toss a civil fraud lawsuit accusing him of misleading investors about the risky bets the futures firm was taking before its collapse a year ago." The WSJ reports that "Corzine's lawyers blasted the investors' suit as a "jumble of assertions and accusations" that makes "no sense" that should be dismissed in a filing Friday in U.S. District Court in New York." The plainitffs, now led by Virginia Retirement System, "sued Mr. Corzine, other company executives and the banks that backed the trading firm, claiming they failed to disclose the risks associated with MF Global's European sovereign debt trades using repurchase-to-maturity transactions."

But here is the kicker: MF Global may have mismanaged trades, Corzine's lawyers admit, but he sure didn't hide the risks or mislead investors about the firm's risk appetite or liquidity. Why? Because he was so convinced in the profitability of MFG he bought a whopping 50,000 MF Global shares in the open market two months before the firm collapsed. So let's get this straight: Corzine invested a whopping $225,000 (as a reminder, Corzine was CEO of Goldman Sachs for years) because he believed in the firm and not to give the impression that the firm was "safe" in order to avoid a full blown panic once the realization its was insolvent could no longer be hidden, and be wiped out on all of his stock, option and other MFG holdings? And this is what sophisticated lawyers use as evidence of his innocence? Seriously?

Since we are rather speechless here, we hand it over to the WSJ:

Indeed, the investors' claim that Mr. Corzine participated in a fraud "makes no sense" because, just two months before the company collapsed, he bought over 50,000 shares of MF Global stock on the open market. His lawyers argue Mr. Corzine's stock purchase belies the investors' claim that he sought to defraud them.

 

As lawyers for the banks that underwrote MF Global's securities noted, trading firms can go under without fraud.

 

"Companies sometimes fail because of unsuccessful business strategies," said lawyers for the underwriters. "However regrettable that reality, courts long have taught that such failures alone do not give rise to claims under the federal securities laws."

 

Mr. Corzine's large bets on bonds of troubled European countries panicked investors and led to the firm's undoing. As MF Global frantically tried to sell assets and negotiate a rescue deal, the firm dipped into customer funds that aren't supposed to be touched under federal regulations.

 

He testified before Congress last year that he was unaware of a shortfall in customer assets at MF Global until hours before its bankruptcy filing.

 

The Justice Department and regulators at the Commodity Futures Trading Commission and Securities and Exchange Commission have looked into MF Global's demise to determine if there was any intent to remove money from customer accounts that should have been kept separate from the firm's own funds under federal rules. To date, neither Mr. Corzine nor others at MF Global have been charged with a crime.

Sorry, we are still speechless... Because apparently if one dumps a massive 0.01% of their net worth as a sunk cost whose sole purpose is to give the optical impression that all is well, when the only purpose is to buy time from gullible investors, then, then... one may get the impression that Spain, which is doing precisely this is also... no, it's unpossible... broke!?

And that just can't be.

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Tue, 10/23/2012 - 15:38 | 2913664 Big Corked Boots
Big Corked Boots's picture

Fuck Corzine.

And fuck all the leach-wannabe's that pollute the Garden State.

Tue, 10/23/2012 - 15:40 | 2913675 HoofHearted
HoofHearted's picture

Fuck Corzine, fuck Bernanke, fuck Geithner, fuck them all.

As elegantly as I can put it....

Tue, 10/23/2012 - 15:43 | 2913697 tsx500
tsx500's picture

eventually , Corzine will pay .    Patience. 

Tue, 10/23/2012 - 15:47 | 2913712 metastar
metastar's picture

Scumbag thinks he bought himself a get out of jail free card. Brilliant!

Tue, 10/23/2012 - 15:53 | 2913744 dbTX
dbTX's picture

Will be interesting to see who Obama pardons in January. Corzine?

Tue, 10/23/2012 - 15:54 | 2913756 eatthebanksters
eatthebanksters's picture

I hope they make him the 'angry dragon' of general population (google that term)...

Tue, 10/23/2012 - 15:56 | 2913767 Manthong
Manthong's picture

So.. since he put a dime in the poor box, he is not guilty of robbing the church?

Tue, 10/23/2012 - 16:07 | 2913804 HobbyFarmer
HobbyFarmer's picture

So, he bought 50,000 shares two months before the collapse.  Would be interesting to see how many shares he sold over a 6 month period.  Lawyers didn't mention selling shares, just a one-time purchase.

Tue, 10/23/2012 - 16:22 | 2913870 The trend is yo...
The trend is your friend's picture

This a staple move by all the top exec.'s, look at Vickram Pandit of Citigroup.  he purchased a few million worth of C stock as soon as he got in the position and lost 90% of it.  The story they don't mention is he sold his hedge fund to Citi which later blew up and made 200 million and over the next 5 years made another 260 million in compensation. 

Tue, 10/23/2012 - 16:42 | 2913939 Thomas
Thomas's picture

How about "fuck Patrick Fitzgerald" for writing such tripe. This guy is not a journalist. He's a whore.

Tue, 10/23/2012 - 17:09 | 2914026 MillionDollarBogus_
MillionDollarBogus_'s picture

I like Corzine's style...

Tue, 10/23/2012 - 19:26 | 2914418 Pure Evil
Pure Evil's picture

That's radical dude.......high five!

Tue, 10/23/2012 - 20:02 | 2914507 sandhillexit
sandhillexit's picture

That is the most shocking bit.  Fitzgerald, first argument out of the box at Skaddin Arps, and it is a glorified "shit happens."  He really could have had any job or office in America, and this is how he chooses to make his pile.  Corzine plays as if he is too big to fail, and it seems he still stands inside the magic bubble. It's not the firm with the Teflon, its him, its personal. An expedited Justice Dept prosecution for this crook would have won at least Montana, possibly Nebraska for Obama. Even if the case failed in the end.  The country wants someone who will stand up to the Street.   American farmers cannot trust markets that have served them for almost a century. Their cash vanishes, and no one can explain why JPM doesn't have a moral obligation to return. The rules were set aside to save the banks, to save AIG. The vanishing of institutional cash is a travesty. There is a requirement of fiduciary responsibility.  The New York syndicate covers another shortfall and somehow, despite Tester and Kolbuchar and Durbin, the government cannot work out what the legal loopholes are that must be closed.  Not completely clear, but it seems commodity punting is just too valuable to leave to the Midwestern rubes.  The oldest permanent floating craps game wants that action. 

Tue, 10/23/2012 - 20:56 | 2914623 FEDbuster
FEDbuster's picture

So he "lost" $200K MFG stock purchase, but stole $1.6 billion of customer funds during his last days at the firm.  Somehow that makes him a "victim", too?   Is this supposed to be some sort of Jedi mind trick?

Tue, 10/23/2012 - 15:57 | 2913771 Pladizow
Pladizow's picture

America = Dead Man Walking!

Tue, 10/23/2012 - 17:21 | 2914050 Oracle of Kypseli
Oracle of Kypseli's picture

The Goldmanite Robert Steel bought a million shares of Wachovia before collapse also knowing very well where Wachovia was headed. I bet he was also buying puts through European Accounts.

The modus operandi of these scumbags are always the same.

Tue, 10/23/2012 - 17:39 | 2914107 aerojet
aerojet's picture

It's a civil suit, so no pardon.  Also, he would have to have been convicted of a criminal charge before Obama leaves office because I don't think someone can be retroactively pardoned.  Well, in this upside down country, anything is possible, I guess, but it would be rather odd to pardon someone 'just in case they might later be convicted of a particular crime.'  Kind of a smoking gun there, so to speak.  Actually, speaking of smoking guns...

Tue, 10/23/2012 - 17:59 | 2914154 max2205
max2205's picture

A hum. Have they even charged him. No....

How much security did he have? Did he fly in the helo to the roof and elevator down.

This is a travesty

Tue, 10/23/2012 - 15:56 | 2913760 catacl1sm
catacl1sm's picture

I don't think you can pardon someone that hasn't be convicted, let alone indicted.

Tue, 10/23/2012 - 16:05 | 2913802 malikai
malikai's picture

Yea, and for sure the next puppet with his oh-so-close ties to the squid will hardly see a need to pursue his "blue" bretheren.

Tue, 10/23/2012 - 18:20 | 2914214 nmewn
nmewn's picture

I'll be blunt about this, anyone who willingly invested with Corzine got exactly what they deserved. Its like screwing around with a snake and then complaining it bit.

For other helpful hints & investing advice...go to Corzines new blog dancingwiththedevil.com ;-)

Tue, 10/23/2012 - 19:28 | 2914421 Pure Evil
Pure Evil's picture

And, highly popular with the masses too I might add.

 

I like your style..........High Five!

Tue, 10/23/2012 - 16:28 | 2913887 ToNYC
ToNYC's picture

Since MF Corzine isn't sayin', who's to think he used his own NJ farm tax free sunk funds rather than Joe Doaks's hard-work'd dough? Goldman Jon built his own Hell as long as he happens to live; that was his choice since Hell is optional.

Tue, 10/23/2012 - 15:52 | 2913741 DoChenRollingBearing
DoChenRollingBearing's picture

@ tsx500  + 1  Usually, God/nature issues a rough justice, I agree that he will pay.

 

I hope so, that he will pay and pay and pay and pay.  As far I am concerned, Jon Corzine is the biggest P.O.S. on planet Earth.

Almost any severe punishment is OK w/ me.  Taking away gold bars is a step too far.  Bakrupting customers is a tep too far.

 

Tue, 10/23/2012 - 16:56 | 2913988 petolo
petolo's picture

Cellmate to Bernie Fuckoff and some 250 lbs.gorilla who hasn,t had a conjugal visit for 5 years would be to good for Cornhole-zine.

Tue, 10/23/2012 - 20:51 | 2914608 FEDbuster
FEDbuster's picture

Make sure their roomate has HIV, too.

Tue, 10/23/2012 - 15:57 | 2913763 HellFish
HellFish's picture

I'll help you heat the tar.

Tue, 10/23/2012 - 16:00 | 2913775 kliguy38
kliguy38's picture

BULLSHIT!

Tue, 10/23/2012 - 16:04 | 2913797 insanelysane
insanelysane's picture

Corzine will never pay.

Corzine ordered his underlings to move funds to his buddies at JPM.  

Supposedly Corzine doesn't know MFG doesn't have the funds and his underlings follow orders and ship client money to JPM.

Somehow, although Corzine supposedly doesn't know MFG doesn't have funds, JPM is pretty sure MFG doesn't have funds and asks to have MFG sign document stating money is not clients' money.

MFG doesn't sign the documents for JPM because things are "hectic."

JPM keeps the money even though they never got the signed document which seems to be illegal.

Corzine and the Bankster syndicate file bankruptcy so that JPM will never have to return money or be held accountable because the clients are subjugated to the creditors.

Corzine and JPM live happily ever after.  Investment 300k in stocks with a return of a couple billion.  Not bad for less than a year's work.

Tue, 10/23/2012 - 16:17 | 2913852 tsx500
tsx500's picture

i never mentioned anything about method of payment .........

Tue, 10/23/2012 - 16:37 | 2913919 eddiebe
eddiebe's picture

tsx 500: Eventually we're all dead.

Tue, 10/23/2012 - 16:58 | 2913993 ShrNfr
ShrNfr's picture

No accounting for some people's sexual habits, but I prefer my own wife thank you.

Tue, 10/23/2012 - 15:57 | 2913694 TruthInSunshine
TruthInSunshine's picture

From:      The Offices of The Hon. Jon S. Corzine

To:         My fellow Americans & Patriots, ever vigilant

 

Dear Fellow Citizens,

I went long MF Global just prior to its absolute and speed of light (or fiber optic cable) implosion on the order of 50,000 of its shares. If that's not direct evidence of my uber-bullish state of mind regarding MF Global, nothing can be.

If the glove doesn't fit, I dare say in the court of public opinion, let alone a court of law, you bitchez must acquit.

Rock on with your bad selves.

 

Sincerely & With Respect,

 

The Hon. Jon S. Corzine*

"This one the pimp hand remains strong in.  Herh herh herh."

 

*Former United States Senator (D-NJ), Former Governor of New Jersey, Former CEO of Goldman Sachs, Former CEO of MF Global (a former Primary Dealer), and prominent Obama Bundler

Tue, 10/23/2012 - 16:09 | 2913813 malikai
malikai's picture

The Honourable Corzine is just misunderstood after all.

He's one of the good guys, fellas.

Tue, 10/23/2012 - 16:29 | 2913892 Uncle Remus
Uncle Remus's picture

We see that...

Tue, 10/23/2012 - 16:20 | 2913862 ParkAveFlasher
ParkAveFlasher's picture

P.S. No, fuck you.

 

Tue, 10/23/2012 - 23:19 | 2914853 Jam Akin
Jam Akin's picture

Just look at that distinguished resume:  Write in - Corzine for President!

Tue, 10/23/2012 - 17:07 | 2914012 Wile-E-Coyote
Wile-E-Coyote's picture

Never trust anyone with a beard. A disproportionate amount of serial killers have beards,look it up.

The bastard should hung his bollocks with piano wire.

Tue, 10/23/2012 - 19:14 | 2914396 jumbo maverick
jumbo maverick's picture

Santa? Is that you Santa? Say it ain't so.

Tue, 10/23/2012 - 17:47 | 2914128 jose.six.pack
jose.six.pack's picture

Free Jon Corzine!

Thu, 10/25/2012 - 11:26 | 2918608 robertsgt40
robertsgt40's picture

Rob a bank from the outside, get 20yrs.  Rob a bank from the inside, walk

Tue, 10/23/2012 - 15:39 | 2913665 jomama
jomama's picture

rehypothecated lies, bitchez.

Tue, 10/23/2012 - 15:46 | 2913716 ZackLo
ZackLo's picture

Whoa now, .01 is a big number now....Here in the new normal we call that "Investment Grade"

Tue, 10/23/2012 - 15:38 | 2913671 knukles
knukles's picture

Au contraire, it's prima face evidence that he thought he could get away with the crime by further self enrichment.

Tue, 10/23/2012 - 17:23 | 2914055 Piranhanoia
Piranhanoia's picture

"I didn't steal the shit, so you must acquit",   O.J. Corzini.

Tue, 10/23/2012 - 17:50 | 2914140 unrulian
unrulian's picture

the wallet just won't quite fit in his back pocket

Tue, 10/23/2012 - 15:41 | 2913674 Gene Parmesan
Gene Parmesan's picture

Astonishing. F John Corzine and his whole corrupt, scumbag family.

Tue, 10/23/2012 - 15:41 | 2913676 fonzannoon
fonzannoon's picture

who is the next mf? this market tide looks like it's heading out.

Tue, 10/23/2012 - 15:53 | 2913751 darteaus
darteaus's picture

IMF

Tue, 10/23/2012 - 15:43 | 2913681 LawsofPhysics
LawsofPhysics's picture

Sacrafice a little in order to steal 100,000 times that amount.  Nothing changes until we see real consequences for bad behavior at ALL levels of society.  The courts can deliver the justice or the mob can.  Your choice, stupid fucking sheep.

 

Want "markets" to rally?  execute this fucker, publically.

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