MF Global Trustee Sues Jon Corzine For Firm's Collapse

Tyler Durden's picture




 

Just about a year and a half after the bankruptcy filing of MF Global, the first real lawsuit that directly names former MF Global (and Goldman) CEO Jon Corzine and his cronies, has hit the docket with MFG Holdings bankruptcy trustee Louis Freeh as plaintiff. The complaint: breach of fiduciary duty. Of course, when one is a bundler for the president, such trivial concepts as duty to anyone else, be it fiduciary or otherwise, naturally does not exist.

The premise of the suit:

During the period when Defendants were running MF Global, they dramatically changed the Company’s business plan without addressing existing systemic weaknesses that ultimately caused the plan to fail. As part of the new business plan, and in violation of his fiduciary duties to MF Global as the Chief Executive Officer (“CEO”) of Holdings Ltd. and MF Global Inc. (“MFGI”), Defendant Corzine engaged in risky trading strategies that strained the Company’s liquidity and could not be properly monitored by the Company’s inadequate controls and procedures. Defendants Abelow and Steenkamp, Corzine’s hand-picked deputies and the Company’s most senior officers, breached their fiduciary duties by failing to ensure that the Company’s procedures and controls were adequate and could accommodate the Company’s new business plan.

The full details, and the nature of the verb to Corzine (as per Urban Dictionary: verb. to trust your money to a prominent individual and to find it has mysteriously disappeared "Oh no! Look at the financial statement. We have been corzined!"), well-known to all of our readers, are listed in the full suit attached below.

As for the rhetorical question of whether crony capitalist justice will prevail and if Corzine will finally be released from prison, oh wait, sorry, wrong parallel universe, the answer is a resounding no.

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Tue, 04/23/2013 - 09:12 | 3487620 Sylvia Plath
Sylvia Plath's picture

Corzined Bitches!

Tue, 04/23/2013 - 09:18 | 3487657 Burt Gummer
Burt Gummer's picture

Bring out the Rope and Lamp post already for fuck sake.

 

https://www.youtube.com/watch?v=ZS2Z19yTuPI

Tue, 04/23/2013 - 10:05 | 3487911 cifo
cifo's picture

It will probably be thrown out.

Tue, 04/23/2013 - 10:31 | 3488014 Taterboy
Taterboy's picture

I'll 9 out 10 Americans don't even know who he is. The baby mommas are going,"Who tat. He be a democrat. He a good man. Gimme tat."

Tue, 04/23/2013 - 10:45 | 3488055 Divine Wind
Divine Wind's picture

 

 

Word !

Tue, 04/23/2013 - 14:32 | 3489479 smlbizman
smlbizman's picture

freeh is an insider....so maybe...just maybe...corzine meet bus....

Tue, 04/23/2013 - 09:19 | 3487661 Stackers
Stackers's picture

Lets not forget, US Senator, Governor of New Jersey and adulterer .............. what's the definition for a psychopath again ?

Tue, 04/23/2013 - 09:28 | 3487705 Papasmurf
Papasmurf's picture

Two of those are capitol crimes.

Tue, 04/23/2013 - 09:46 | 3487826 azzhatter
azzhatter's picture

Waterboard Corzine

Tue, 04/23/2013 - 10:06 | 3487905 francis_sawyer
francis_sawyer's picture

Cue up the jew lawyer vultures to all take a whack at the carcass with their beaks...

~~~

& from start to finish, not even a stinkin' 'widget' was ever produced, or made anyone's lives any better...

Well... Unless, of course, you're a vulture...

Tue, 04/23/2013 - 10:10 | 3487935 greased up deaf guy
greased up deaf guy's picture

stackers, don't forget to add ceo of goldman to his resume. any psycho/sociopath worth his salt would be especially proud of that distinction.

Tue, 04/23/2013 - 13:13 | 3488849 NotApplicable
NotApplicable's picture

Ooooh failed his "fiduciary duty." That vagueness will be easy to white-wash. Especially since they've had a year and a half to hide all of the bodies.

Tue, 04/23/2013 - 10:46 | 3488057 Divine Wind
Divine Wind's picture

 

 

Good Ol' Jew Hatin Frank !

Tue, 04/23/2013 - 11:51 | 3488389 francis_sawyer
francis_sawyer's picture

So ~ 'Divine Wind' is what comes out of an ostrich ass whose head is buried in the sand...

~~~

Who knew?

While your at it... Why don't you compile us all a list of the beneficiaries & casualties of the whole ordeal... As well as a summary of the greater good any of it produced for mankind...

My reply is ZERO [in terms of benefits to mankind]

My reply is, as always, ASYMMETRIC [with regards to the beneficiaries who received monetary compensation vs. the victims that got screwed]...

<crickets> coming in 5...4...3...2...

Tue, 04/23/2013 - 12:49 | 3488730 Political_Savage
Political_Savage's picture

Agreed - Asymmetric.

But is that because of Jewish design? Lost me there.

Trying to figure out where the Jews fit in here... Corzine is protestant

 

Tue, 04/23/2013 - 14:54 | 3489471 francis_sawyer
francis_sawyer's picture

@Political... "But is that because of Jewish design? Lost me there. Trying to figure out where the Jews fit in here... Corzine is protestant"

~~~

The ASYMMETRY [of which I speak of relentlessly], is whereby, in a world where the 'economy' [blood] flows is based on FIAT currencies [the US Dollar being the so-called 'reserve' currency]... Jews, [whether they play an active role in manipulation, OR, ar just poor saps like everyone else, but have hustled themselves into every profession (banking, MSM, political activism, jurisprudence, MIC) that benefits from a bloated 'fractional reserve system' (that SKIMS cream off of otherwise PRODUCTIVE work], benefit ASYMMETRICALLY versus their population demographic in the world body...

I'd have ZERO argument whatsoever if I believed that these ZERO PRODUCTION models were to the benefit of mankind, but who, HERE, can make a sound argument that having one more:

- banker

- lawyer

- judge

- AIPAC lobbyist

- drone or bomb producing industry

- or, Hollywood shithead

is doing humanity any favors?

~~~

The place to REALLY look for answers is the media [because it is the 'opiate' of the masses]... If the media were doing a good job of presenting honest & objective journalism, then the 'programming' would be different... Instead... The 'programming' is, ALWAYS, skewed towards IGNORING the blatant injustices [& who, asymmetrically, is behind them], or, WORSE, going overboard to give the asymmetric perpetrators a free pass...

So basically ~ Your future will continue to be one of:

- false flag terrorism

- raping & pillaging by banks

- erosion of freedoms

- more 'Holocaust' movies, BAD 'MUZZIE' whipping boy-isms, & suppression of FREE SPEECH

Until you wake up one day and finally decide you've had enough... I hope that answers your question...

 

Tue, 04/23/2013 - 09:52 | 3487853 FrankDrakman
FrankDrakman's picture

Thousands may not get your subtle humour, but I appreciated it.

Of course, only the King's wife is executed for adultery.

Tue, 04/23/2013 - 09:41 | 3487792 mrdenis
mrdenis's picture

is that the same "honorable " Jon Corzine ......who swore " I just don't know where the money is" ? 

Tue, 04/23/2013 - 09:45 | 3487817 ATM
ATM's picture

He may not know where the money is but he sure as hell should know where the rope goes.

Tue, 04/23/2013 - 09:45 | 3487819 Ancona
Ancona's picture

Your Honor, I would like to exercise my rights as guaranteed under the Fifth Amendment.....

Tue, 04/23/2013 - 10:02 | 3487899 astoriajoe
astoriajoe's picture

I plead the FIF!

Tue, 04/23/2013 - 10:33 | 3488022 Fish Gone Bad
Fish Gone Bad's picture

Corzine has had a few fifths (of whiskey).

Tue, 04/23/2013 - 10:48 | 3488067 tnquake
tnquake's picture

Please take away my 2nd and 4th Amendment, but leave me the 5th!

Tue, 04/23/2013 - 11:34 | 3488297 willien1derland
willien1derland's picture

Sorry mrdenis I thought you indicated Horrible Jon Corzine...

Tue, 04/23/2013 - 11:23 | 3488222 solgundy
solgundy's picture

Get real...this is the Southern District NY Federal court....I assure you Judge Roy Bean is not on the bench.....CASE DISMISSED.....end of story

Tue, 04/23/2013 - 13:16 | 3488870 NotApplicable
NotApplicable's picture

Dissmissed? No, no, no.

Don't worry, the kangaroo will get his day in court. Otherwise they wouldn't have waited this long to bother.

Tue, 04/23/2013 - 09:12 | 3487621 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Open season or just another feel good response, to placate the masses?

Mr. C. is well connected, very wealthy, and more than likely a sociopath. 

He remains teflon incarnate, a Bernie of another flavor.

Tue, 04/23/2013 - 09:15 | 3487640 spastic_colon
spastic_colon's picture

yes and bullish of course.......O/T

Anyone here want to venture a guess as to how understated ES futures are compared to what the equity markets are going to do today?  I say it will be a 1%+  day just because that fag draghi opened his mouth.

Tue, 04/23/2013 - 13:17 | 3488881 NotApplicable
NotApplicable's picture

As soon as you stop using the misnomer "markets" you'll understand everything.

Tue, 04/23/2013 - 09:18 | 3487656 TeamDepends
TeamDepends's picture

He'll need to be kevlar pretty soon.

Tue, 04/23/2013 - 09:22 | 3487682 HulkHogan
HulkHogan's picture

The case will be thrown out and then a new law will be passed so Corzine can never be sued again.

Tue, 04/23/2013 - 11:36 | 3488318 willien1derland
willien1derland's picture

I am certain that Dodd-Frank has some provision to prevent justice

Tue, 04/23/2013 - 09:24 | 3487693 insanelysane
insanelysane's picture

Sealed settlement with no admission of guilt.

Tue, 04/23/2013 - 09:25 | 3487698 Lux Fiat
Lux Fiat's picture

Not a law expert, but have to wonder if this is another attempt to trump/block/stall other potential lawsuits from non-government sanctioned entities, drag it out, and then do a horrible job in the courtroom so that Corzine walks, and others are "dissuaded" from bringing suit.  The SEC comes to mind.

Tue, 04/23/2013 - 09:31 | 3487738 Bastiat
Bastiat's picture

Plus 1 for my first dose of reality therapy for the day.

Tue, 04/23/2013 - 09:42 | 3487795 XitSam
XitSam's picture

Yeah. I'm wondering about this civil suit instead of criminal.

Tue, 04/23/2013 - 11:58 | 3488256 Lux Fiat
Lux Fiat's picture

Yep, another rug-sweeping operation designed to play the "Look, we're doing something about it" card to the masses.

Started reading the suit and got to this statement that stopped me dead in my tracks:  "During the last week of its operations, the lack of control over cash and cash movements led the Company to lose track of fund transfers and to incur a substantialcustomer fund shortfall."  This after lots of talk about failing to beef up financial controls.  Talk about trying to sanitize the past and turn deliberate misappropriation of assets [I believe it is called theft and fraud and a host of other criminal terms] into an unfortunate lack of oversight...Sickening.

Edit:  Forgot to include this other lovely from page 6 of the suit.  Is this the "keep your trap shut and you won't be criminally prosecuted" pledge to the potential witnesses who could testify in a criminal case? [*cough - Edith "per JC's orders" O'Brien - *cough]:  "Because of the Company’s deficient systems, members of the Company’s Treasury Department were not aware at the time that they were using customer funds." 

Tue, 04/23/2013 - 13:18 | 3488913 NotApplicable
NotApplicable's picture

As Freeh stated recently, NOBODY could tell. So, at worst, he'll get a slap on the wrist for failing to safeguard the accounts. Maybe Celente (et al.) will end up with a new Spiderman towel or something as a settlement?

Tue, 04/23/2013 - 14:32 | 3489480 Lux Fiat
Lux Fiat's picture

They get a coupon for their first 25 trades free at Sentinel or Peregrine...oh wait...

Tue, 04/23/2013 - 09:15 | 3487625 firstdivision
firstdivision's picture

Hey Corzine, sucks to be you!

 

USD up, commodities up, equities up, TSYs up......looking like it's going to be "one of those days".

Tue, 04/23/2013 - 09:18 | 3487662 Dr. Engali
Dr. Engali's picture

Why does it suck to be him? He walked away with 1.2 billion dollars and nothing happened. This will drag out until the fucker is dead.

Tue, 04/23/2013 - 09:42 | 3487810 TeamDepends
TeamDepends's picture

Yes, but he will be looking over his shoulder until that point.

Tue, 04/23/2013 - 10:44 | 3488053 localsavage
localsavage's picture

You would think but so far only Madoff's kid has been "suicided"

Tue, 04/23/2013 - 13:20 | 3488931 NotApplicable
NotApplicable's picture

Only to make sure his tanning oil is evenly distributed.

Tue, 04/23/2013 - 09:13 | 3487626 greased up deaf guy
greased up deaf guy's picture

if you can't jail him, sue him?

Tue, 04/23/2013 - 09:29 | 3487719 Papasmurf
Papasmurf's picture

He's not to big to jail.  His investors are up to that task.

Tue, 04/23/2013 - 10:36 | 3488032 Fish Gone Bad
Fish Gone Bad's picture

His investors are up to prostituting him, one ass rape at a time.

Tue, 04/23/2013 - 09:14 | 3487633 krispkritter
krispkritter's picture

Well the smell of brimstone's still apparent, but it sure is cooling off in here...

Tue, 04/23/2013 - 09:14 | 3487635 Jim B
Jim B's picture

Where the perp walk?  Must be in the other universe.... 

Tue, 04/23/2013 - 09:15 | 3487644 fonzannoon
fonzannoon's picture

"...Way back in the transition period, before we were sworn in, when Barack Obama and I were literally sitting at a desk in a high rise in Chicago, beginning the plan on how we would try to get this economy out of a ditch, literally, the first guy I called was Jon Corzine. It's not a joke. It's not a joke. First of all, he's the smartest guy I know in terms of the economy and on finance, and I really mean that."

Joe B

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