This page has been archived and commenting is disabled.

Corzine Officially Charged By CFTC For Filing False Reports, Commingling Funds And Other Violations

Tyler Durden's picture




 

And now can we please fast forward to the wrist-slap settlement. Of course, assuming there is no "settlement", what dreadful fate await Corzine? "The CFTC also seeks full restitution and penalties against Holdings, Corzine, and O’Brien, in addition to trading and registration bans and injunctions against Corzine and O’Brien." Not the dreaded registration ban. Anything but the dreaded registration ban...

From the CFTC:

CFTC Charges MF Global Inc., MF Global Holdings Ltd., Former CEO Jon S. Corzine, and Former Employee Edith O’Brien for MF Global’s Unlawful Misuse of Nearly One Billion Dollars of Customer Funds and Related Violations

Settlement of charges against MF Global, subject to court approval, directs payment of all funds still owed to commodity customers and imposes a $100 million penalty against the company

Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today filed an enforcement action in the United States District Court for the Southern District of New York against MF Global Inc. (MF Global), a registered futures commission merchant (FCM), MF Global Holdings Ltd. (Holdings), former Chief Executive Officer of MF Global and Holdings Jon S. Corzine, and former Assistant Treasurer of MF Global Edith O’Brien based on, among other violations, MF Global’s unlawful use of customer funds that harmed thousands of customers and violated fundamental customer protection laws on an unprecedented scale.

MF Global has agreed to settle all charges against it on terms set forth in a proposed order that is subject to court approval and includes 100% restitution of the approximately $1 billion lost by all commodity customers when the firm failed on October 31, 2011. Commissioner Jill Sommers stated, “I am pleased that the MF Global Trustee has agreed to settle the charges against the company. There is nothing more important than doing everything possible to make full restitution to all commodity customers. I am also proud of the members of the Division of Enforcement team, who have worked so hard on this case to bring us to where we are today.”

According to the Complaint, Corzine, a former U.S. Senator and New Jersey Governor with more than twenty years of Wall Street experience, joined MF Global as CEO in March 2010 with a plan to transform the firm from a futures broker into a major investment bank. Corzine’s strategy called for making increasingly risky and larger investments of the firm’s money. In the summer and fall of 2011, as MF Global’s need for cash was rising and its sources of cash were diminishing, Corzine knew that the firm was relying more and more on proprietary funds that it held alongside customer funds in FCM customer accounts. During this time, Corzine did not enhance MF Global’s deficient systems and controls sufficiently to ensure that the firm’s increasing reliance on FCM cash did not result in unlawful uses of customer money. Ultimately, these failures contributed to the massive customer losses.

As alleged, during October 2011, MF Global was on the brink of failure and in desperate need of cash to survive. As Holdings’ Treasurer told Holdings’ CFO at that time, in one of many recorded phone calls obtained by the CFTC, the firm was “skating on the edge,” without “much ice left.” Corzine was warned about the firm’s liquidity stresses, and he knew that the firm violated its own policy that had been designed to protect customer funds. Holdings’ Treasurer recommended to Holdings’ CFO in a recorded call, “we have to tell Jon that enough is enough. We need to take the keys away from him.”

In the last week of October 2011, with virtually no other sources of immediate cash to turn to, the firm repeatedly and unlawfully used customer funds for firm needs, ultimately leaving it nearly $1 billion short of customer funds. In that last week, Corzine is alleged to have been aware of the firm’s true low cash balance, even as he directed the firm to continue paying large obligations without inquiring how the firm could come up with the money to do so. Corzine is charged for the firm’s violations as an MF Global “control person” who, among other things, did not act in good faith and is also charged with violating his legal obligations to diligently supervise.

David Meister, the CFTC’s Enforcement Director, said, “Turning a profit is not the only job of the person at the top of a CFTC-regulated firm. 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. The allegations in our Complaint serve as a stark reminder that we will enforce the law against responsible individuals at all levels of a firm to ensure that customer funds are properly safeguarded every minute of every day.”

O’Brien, MF Global’s Assistant Treasurer, is charged with aiding and abetting the firm’s misuse of customer funds. According to the Complaint, she directed, approved, and/or caused improper transfers of hundreds of millions of dollars from customer accounts to help meet the firm’s needs during the final days of October 2011, while knowing that MF Global did not have sufficient proprietary funds available in those customer accounts for those transfers. The Complaint alleges that O’Brien remarked in a recorded telephone conversation that it “could be game over” from a regulatory perspective if funds were not returned to customer accounts on Friday, October 28, 2011, MF Global’s final business day.

With respect to the company defendants, in addition to the misuse of customer funds described above, the Complaint charges that MF Global (i) unlawfully failed to notify the CFTC immediately when it knew or should have known of the deficiencies in its customer accounts; (ii) filed false reports with the CFTC that failed to show the deficits in the customer accounts; and (iii) used customer funds for impermissible investments in securities that were not considered readily marketable or highly liquid in violation of CFTC regulation; and that Holdings controlled the operations of MF Global and is therefore liable as a principal for MF Global’s violations of the Commodity Exchange Act and CFTC regulations.

If approved by the United States District Court and the United States Bankruptcy Court, the proposed settlement of all charges against MF Global will require 100% restitution of all remaining commodity customer claims. The proposed order also includes the imposition of a $100 million penalty, which can be paid to the extent MF Global has not fully exhausted all available funds and assets paying customers and then other creditors entitled to priority under bankruptcy law.

The CFTC also seeks full restitution and penalties against Holdings, Corzine, and O’Brien, in addition to trading and registration bans and injunctions against Corzine and O’Brien.

The CFTC appreciates the assistance of the U.S. Attorneys’ Offices for the Southern District of New York and the Northern District of Illinois, the Federal Bureau of Investigation, the Securities and Exchange Commission, and the Financial Conduct Authority in the United Kingdom.

CFTC Division of Enforcement staff members responsible for this case are Candice Aloisi, Elizabeth Brennan, Patryk Chudy, Christopher Giglio, Sheila Marhamati, David W. Oakland, Joseph Rosenberg, Michael Berlowitz, Karin Roth, Chad Silverman, K. Brent Tomer, Douglas K. Yatter, Steven Ringer, Lenel Hickson, Stephen J. Obie, and Vincent McGonagle. Jeremy Christianson from the CFTC’s Office of Data and Technology also assisted in this matter, along with staff from the CFTC’s Division of Swap Dealer and Intermediary Oversight and Division of Clearing and Risk.

Full complaint:

 

 

MF Global Complaint by zerohedge

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 06/27/2013 - 14:34 | 3700145 ZerOhead
ZerOhead's picture

Bankfine for Corzine...

Thu, 06/27/2013 - 14:40 | 3700164 YuropeanImbecille
YuropeanImbecille's picture

Criminals are never very amusing. It's because they're failures. Those who make real money aren't counted as criminals. This is a class distinction, not an ethical problem.

Thu, 06/27/2013 - 15:11 | 3700376 max2205
max2205's picture

Nothing a small donation to the Obama warchest won't solve.....

Thu, 06/27/2013 - 15:13 | 3700398 max2205
max2205's picture

Even Eron Schilling payed Obama $40 mill to get a 10 year reduction in time....shit never ends my friends

Thu, 06/27/2013 - 15:26 | 3700425 ZerOhead
ZerOhead's picture

Say... just a stupid question here... but where exactly does the trustee for MFG get the $1,000,000,000.00 from to pay back the segregated accounts that Corzine stol... err... rehypothecated it from?

http://finance.yahoo.com/news/mf-global-ends-bankruptcy-trustee-02030616...

JPMorgan, agent on MF Global's $1.2 billion revolving credit facility, is slated to recover as much as 76 percent of its total claim. Unsecured creditors of MF Global's finance and parent units are slated to recover around 34 percent of their claims.

Thu, 06/27/2013 - 15:30 | 3700492 francis_sawyer
francis_sawyer's picture

Get down & ready to do some pushups people... Our 'hero of the day' is about to scarf down another jelly donut...

Thu, 06/27/2013 - 15:14 | 3700404 NotApplicable
NotApplicable's picture

Free Jon Corzine!*

*with purchase of another bankster of greater or equal value

Thu, 06/27/2013 - 15:27 | 3700473 Hippocratic Oaf
Hippocratic Oaf's picture

The picture says it all

Thu, 06/27/2013 - 15:35 | 3700517 DeadFred
DeadFred's picture

Despite the obvious fact that Corzine deserved much more than this what is happening is not 'nothing'. This is one more sign that the Kenyan guy is losing his grip on events. <Big Smile>

Thu, 06/27/2013 - 14:37 | 3700167 dryam
dryam's picture

He won't have any problem paying the $50 fine after he's conficted.

Thu, 06/27/2013 - 14:42 | 3700200 ebworthen
ebworthen's picture

I doubt he is conflicted ;-)

He may be convicted, and the $50 will come out of the victims' settlement.

Thu, 06/27/2013 - 14:45 | 3700223 ParkAveFlasher
ParkAveFlasher's picture

"Alright Jon, just don't do it again and pay the clerk on the way out."  </americanjustice>

Thu, 06/27/2013 - 14:49 | 3700249 Triggernometry
Triggernometry's picture

Amazing the kind of backbone people at CFTC find in themselves when PM's take a hit...

Thu, 06/27/2013 - 14:55 | 3700275 Pladizow
Pladizow's picture

At worst he'll have to give the CFTC 10% of what he stole - and that will come from the Obummer fund raisers!

Thu, 06/27/2013 - 15:10 | 3700371 xtop23
xtop23's picture

Precisely. 

The CFTC finding religion........ now!!??

Not a gd chance. 

Thu, 06/27/2013 - 14:54 | 3700278 ParkAveFlasher
ParkAveFlasher's picture

Time to boost margin requirements!

Thu, 06/27/2013 - 14:57 | 3700300 Manthong
Manthong's picture

So does this mean we can get gold back down to 42 bucks?

Thu, 06/27/2013 - 18:53 | 3701289 Theosebes Goodfellow
Theosebes Goodfellow's picture

~"!!!WHAT DIFFERENCE DOES IT MAKE?!?!?!?!!!!"~

(Sorry, just having a Hillary moment....)

Thu, 06/27/2013 - 14:54 | 3700284 bank guy in Brussels
bank guy in Brussels's picture

Indeed

« Today US business is measured by what you stole minus the fine you paid. »

- Jim Sinclair, Mineset

Thu, 06/27/2013 - 15:07 | 3700359 Skateboarder
Skateboarder's picture

Where the stole is in the billions of dollars, fined is in the millions of dollars, and speculation is in the trillions of dollars. Gotta love healthy orders of magnitudes...

Thu, 06/27/2013 - 15:36 | 3700505 centerline
centerline's picture

Go big or go home.

I was always told that if I was going to steal, make it massive.  While I would never commit such crimes, I have to admit that I seriously underestimated what "massive" means.

Thu, 06/27/2013 - 17:43 | 3701081 Totentänzerlied
Totentänzerlied's picture

"Just fuckin' take it!"

-John Corzine's financial advice

Thu, 06/27/2013 - 14:56 | 3700299 McMolotov
McMolotov's picture

"Baliff, whack his pee-pee!"

</Cheech and Chong>

Thu, 06/27/2013 - 15:00 | 3700315 Manthong
Manthong's picture

ha ha ha  :-D

Thu, 06/27/2013 - 15:22 | 3700454 XitSam
XitSam's picture

This is cover so he can say his critics are wrong because he was found not guilty.  Predetermined verdict or the charges wouldn't have been brought.

Thu, 06/27/2013 - 15:20 | 3700441 CaptainObvious
CaptainObvious's picture

Yeah, it's about fucking time they charged this pathological douchewad, but his punishment will consist of 1 year's jail time (suspended sentence, natch) and a fine of 1% of what he stole.  Not mentioned will be the $40 million in bribes he will pay out to get off that light.  Lady Justice isn't blind, she's retarded.

Thu, 06/27/2013 - 17:22 | 3701000 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

...you left out next Governor of New Jersey.  (if Jerry Brown can do it -- hell!)

Thu, 06/27/2013 - 14:43 | 3700211 deKevelioc
deKevelioc's picture

But there is no manipultion of the silver and gold market.

Thu, 06/27/2013 - 14:50 | 3700258 disabledvet
disabledvet's picture

again "Copper is at 3 bucks a pound. that's your cost for mining silver." know who you're taking on when you do this stuff too. 50 bucks for silver? in 1979? amazing. impressive. dead. buried.

Thu, 06/27/2013 - 15:13 | 3700361 Manthong
Manthong's picture

Look at art .. and whacko condo's at the top of big buildings in the metro's..

They are telling you something.. 

oh, and I continue to follow the value of fine watches..

what do the money people value?

it has something to do with scarcity.

Thu, 06/27/2013 - 15:24 | 3700464 XitSam
XitSam's picture

How many years now of silver market manipulation investigation?  CFTC couldn't piss their way out of a paper bag.

Thu, 06/27/2013 - 14:47 | 3700241 Unprepared
Unprepared's picture

Blankfein for Corzine? You mean like pleading the "Doing God's Work" amendement to the Untouchables Just Us Constitution?

"Your honor, I might be guilty but I'm an ex-Goldmanite if you see what I mean."

"Oh, ok then... case closed."

Thu, 06/27/2013 - 14:54 | 3700280 Kaiser Sousa
Kaiser Sousa's picture

Chilton is on CNBS as i type...and i qoute - 

"we thought it was important to bring this suit cause people need to know that the Government is looking out for them...."

im way pass ready to start killing these banker owned mother fucking cocksucker bastards................................

Thu, 06/27/2013 - 15:05 | 3700349 HedgeHammer
HedgeHammer's picture

That depends on your definition of the word "is" is.

 

Thu, 06/27/2013 - 15:23 | 3700460 CaptainObvious
CaptainObvious's picture

"we thought it was important to bring this suit cause people need to know that the Government is looking out for them...."

Correction..."We thought it was important to bring this suit cause we need to fill our own bank accounts with graft and the people need to know that the Government is looking at them while they call, type, drive, eat, and sleep."

Fuck them all.  Hard.  With cement dildos.

Thu, 06/27/2013 - 15:30 | 3700491 Hippocratic Oaf
Hippocratic Oaf's picture

Jeez Cap, cement dildos?

Goddamn lost it on that one.

Bravo

Thu, 06/27/2013 - 15:45 | 3700563 Bay of Pigs
Bay of Pigs's picture

Hey Bart, whatever happened to that 4 year old silver investigation?

This liar, shill and fraud deserves the firing squad as well.

 

Thu, 06/27/2013 - 17:53 | 3701118 DosZap
DosZap's picture

Gosh!! how quaint, and they gave him plenty of time to move others assets into his little domain..........where were they a year ago?.

Thu, 06/27/2013 - 14:35 | 3700149 Sequitur
Sequitur's picture

"I did not have sex with that woman, Ms. Lewinsky."

- John Corzine

Thu, 06/27/2013 - 14:52 | 3700267 asscannon101
asscannon101's picture

"I was not a-doin' her, she was a-doin' ME!"
- Lil' Willy Clinton

Thu, 06/27/2013 - 14:55 | 3700289 mt paul
mt paul's picture

i did...

she wasn't that much fun...

Thu, 06/27/2013 - 15:19 | 3700435 knukles
knukles's picture

"But I sure did fuck them people at MFG, bigtime. Booyah, motherfuckers"

Thu, 06/27/2013 - 14:36 | 3700152 hmmmstrange
hmmmstrange's picture

Presidential pardon.....

Thu, 06/27/2013 - 14:48 | 3700244 cougar_w
cougar_w's picture

... and there might be a place for him at The Fed.

Thu, 06/27/2013 - 14:58 | 3700304 Doubleguns
Doubleguns's picture

and a beer. Maybe even a kiss later. 

Thu, 06/27/2013 - 14:37 | 3700155 dryam
dryam's picture

deleted

Thu, 06/27/2013 - 14:45 | 3700221 ZerOhead
ZerOhead's picture

Too late... the NSA utilizes key-stroke logging technologies.

And as a result Corzine, Gen. Alexander and now Obama's 'kill list' knows exactly what you called them...

Thu, 06/27/2013 - 14:49 | 3700254 cougar_w
cougar_w's picture

Are you kidding? Google crawls ZH every 15 seconds. Your deleted post will be searchable before you can get rid of it.

Thu, 06/27/2013 - 14:55 | 3700291 disabledvet
disabledvet's picture

i'm shocked! what else are those mad heathens up to!

Thu, 06/27/2013 - 14:58 | 3700310 mt paul
mt paul's picture

google knows your comment

before you do ..

Thu, 06/27/2013 - 15:05 | 3700346 Uchtdorf
Uchtdorf's picture

And even before Chuck Norris does.

Thu, 06/27/2013 - 15:12 | 3700381 ParkAveFlasher
ParkAveFlasher's picture

You can find Chuck Norris @ RoundhouseKickToTheFaceBook.WHAM.  

 

Thu, 06/27/2013 - 16:54 | 3700896 SAT 800
SAT 800's picture

That;s funny. It's about time somebody delivered a roundhouse kick to the facebook.

Thu, 06/27/2013 - 15:24 | 3700463 replaceme
replaceme's picture

Then, they took everything about me and put it into a computer where they created this model of my mind. Yes! Using that model they managed to generate every thought I could possibly have in the next, say, 10 years. Which they then filtered through a probability matrix of some kind to - to determine everything I was gonna do in that period. So you see, She (Google) knew I was gonna lead the Army of the Twelve Monkeys into the pages of history before it ever even occurred to me. She (Google) knows everything I'm ever gonna do before I know it myself. How's that?

Thu, 06/27/2013 - 15:46 | 3700566 DeadFred
DeadFred's picture

Careful, that's Tyler in another life.

Thu, 06/27/2013 - 14:37 | 3700166 Fish Gone Bad
Fish Gone Bad's picture

I often wonder if I need to more afraid of criminals, or our justice system.

Thu, 06/27/2013 - 14:40 | 3700190 ZerOhead
ZerOhead's picture

The two are not mutually exclusive... after all who do you think runs the Justice system?

Thu, 06/27/2013 - 15:05 | 3700350 IndicaTive
IndicaTive's picture

We may have a legal system, but it's not a justice system.

Thu, 06/27/2013 - 14:42 | 3700205 WTFx10
WTFx10's picture

Both because the criminals also run the justice system. Its always a win win for them.

Thu, 06/27/2013 - 14:52 | 3700265 Winston Churchill
Winston Churchill's picture

Legal, not Justice system.

A small but signifcant difference.

Civil complaint,so fucking what.I want him bunking with Bubba

for 10 years if he  is not executed.

Thu, 06/27/2013 - 15:37 | 3700525 Pairadimes
Pairadimes's picture

This is what's known as a false dichotomy. You know, like Democrat or Republican.

Thu, 06/27/2013 - 14:47 | 3700168 ebworthen
ebworthen's picture

Corzine:  "Commingling funds?  I thought it was you couldn't cunnilingus funds, and I never do that with other people's money.  I'm sorry.  Do not worry.  I won't do it again.  Promise.  Now tell me how much to make the check out for, I have a lunch and golf date with the President."

TWO YEARS it takes them to bring civil, instead of criminal, charges.

Fucking ridiculous, absofuckinglutely beyond ridiculous.

PONZI!!!

Thu, 06/27/2013 - 14:39 | 3700169 The Thunder Child
The Thunder Child's picture

Correct me if I am wrong here but they are taking $100 million from what is left of a bankrupt MF global to pay a fine to the CFTC? Shouldn't the stiffed customers be payed out first?

More fucking dutch rudder?!?!!?

Thu, 06/27/2013 - 14:39 | 3700187 ebworthen
ebworthen's picture

Justice for the little people?  That is in "make's sense" dimension, this is "WTF!?" dimension.

In this fucked up dimension, it is "JustUs" that is dispensed.

Thu, 06/27/2013 - 14:44 | 3700210 The Thunder Child
The Thunder Child's picture

So I am correct then, CFTC is just going to stick their hands in there and rape whats left of the company.

Thu, 06/27/2013 - 14:44 | 3700215 krispkritter
krispkritter's picture

Maybe, maybe not: "the proposed settlement of all charges against MF Global will require 100% restitution of all remaining commodity customer claims. The proposed order also includes the imposition of a $100 million penalty, which can be paid to the extent MF Global has not fully exhausted all available funds and assets paying customers and then other creditors "


Thu, 06/27/2013 - 14:50 | 3700250 The Thunder Child
The Thunder Child's picture

Sorry I read it too fast....thanks

Thu, 06/27/2013 - 14:54 | 3700283 donsluck
donsluck's picture

The guys above you apparently didn't read the charges. Yes, the fines will come out of whatever is left, but Corzine's private holdings of many millions will not be touched. He will be fined and defrocked, but got away with millions. He simply monetized his reputation. Much like a strategic forclosure, where you monetize your credit rating.

Thu, 06/27/2013 - 15:06 | 3700355 krispkritter
krispkritter's picture

What I want, and probably many of his victims, is .Gov to reach out and recover every single asset from Corzine and the rest of these vermin responsible.  And I mean recover in the sense they'll be living under a bridge if necessary or working on the farms they set up to fail because of their manipulations and criminal activity.  I guess we'll have to settle for some embarrassing headlines, the payback of some funds, etc. but I think we also know, that even were this a criminal charge, he would be pardoned before Obama dropped the keys under the mat on his way out. Rats, all rats, and the ship is just too big to fumigate...

Thu, 06/27/2013 - 15:30 | 3700490 CaptainObvious
CaptainObvious's picture

Now you're talking fantasy.  The whole reason the big financiers donate to political campaigns in the first place is to trade favors...I'll get you your power now, if you use it to save my ass later when I get caught stealing from the till.  Corzine and his ilk will still be living in 30,000 square foot mansions with a fleet of cars, the best imported food, servants to wipe their precious assholes, and every important politician on speed dial while you and I are living under the bridge after they finish raping us of all we own.  The only ways to fight this sort of corruption are to unplug from the system entirely, so they can't rape you, or to pull a Turkey/Greece/Brazil/Spain/whichever nation is the next to riot.

Are you getting all this, NSA?  I'll type slower if you need me too.

Thu, 06/27/2013 - 15:47 | 3700567 pherron2
pherron2's picture

If I could have my wish, he'd be sentenced to house arrest for life. This after relieving him of ALL assets. Set up a modest (rat, & cockroach infested) rental home in Detroit for him. Give him a job as the rest room attendant at Mc D's, where he makes just enough money for rent, utilities, and bologna sandwiches (the cheap stuff).

I think this would be worse than daily beatings (though that ought to be included), or death for this elitist cock sucker.

Thu, 06/27/2013 - 15:53 | 3700593 CaptainObvious
CaptainObvious's picture

Nah, if you really want to punish Corzine, his job as the restroom attendant at McD's will only cover the rent on his filthy hovel, and he will need a credit card to purchase food, transportation, health insurance, etc., and when he eventually declares bankruptcy, he will be told that his debts are not dischargeable.

Thu, 06/27/2013 - 17:06 | 3700936 SAT 800
SAT 800's picture

Turn him over to the customers, and their paid stand-ins, one for one; think cage-fighters; in Times Square, and televise the event; no tapping out. Keep going till he's dead. This provides entertainment for the masses and an example to the criminals as the same time. Public hangings were great.

Thu, 06/27/2013 - 14:45 | 3700219 ebworthen
ebworthen's picture

Yes.  After all, government has to get their cut.

Thu, 06/27/2013 - 14:38 | 3700172 game theory
game theory's picture

pure theater...presidential pardon to follow...

Thu, 06/27/2013 - 14:38 | 3700173 jldpc
jldpc's picture

How much does shithead pay from his personal assets?

Thu, 06/27/2013 - 14:54 | 3700274 Jonas Parker
Jonas Parker's picture

$2.95! It's "Bargain Day"!

Thu, 06/27/2013 - 14:55 | 3700288 candyman
candyman's picture

I would not doubt corzine had MF paying his E&O insurance premiums?

Thu, 06/27/2013 - 14:39 | 3700174 krispkritter
krispkritter's picture

Wouldn't be surprised if Corzine ends up in a Moscow airport sometime soon and posting selfies with Snowden on FB. Meanwhile, Amazon takes an order from a 'Mr. Beelzebub' for arctic undergarments and mittens...

Thu, 06/27/2013 - 14:39 | 3700178 The Invisible Foot
The Invisible Foot's picture

No criminal charges like always.

Thu, 06/27/2013 - 14:39 | 3700179 Kiss My Iceland...
Kiss My Icelandic Ass's picture

 

 

Halleluia.

Thu, 06/27/2013 - 14:41 | 3700180 robertocarlos
robertocarlos's picture

I hope they fine him 10,00 dollars!

 

When asked for a comment all he would say was, "Five!"

Thu, 06/27/2013 - 14:39 | 3700182 ATM
ATM's picture

" Unlawful Misuse" yet no criminal charges. That's nice.

Thu, 06/27/2013 - 14:56 | 3700297 cougar_w
cougar_w's picture

It's one of those double-negative lawyer things. "Unlawful misuse" really means "lawful use".

Thu, 06/27/2013 - 14:42 | 3700206 PacOps
PacOps's picture

If any of us even thot about doing this we would be in the Black Hole of Calcutta yesterday. Sounds like something good finally is happening but with the nightmare lifechanges caused by his theft this is nothing. At least Bernie wound up in jail.

Thu, 06/27/2013 - 14:42 | 3700207 Yen Cross
Yen Cross's picture

     Corzine might get slapped on the wrist, but he will be forced to leave his crocodile infested, moat encompassed fortress, to defend himself. I'll be a lot of the farmers he f**ked over are cleaning and sighting in their sniper rifles about now.

Thu, 06/27/2013 - 14:47 | 3700236 krispkritter
krispkritter's picture

Paging Ann Barnhardt, paging Ann Barnhardt...

Thu, 06/27/2013 - 15:20 | 3700439 Sovereign Economist
Sovereign Economist's picture

Paging Gerald Celente... Paging Gerald Celente!

 

Thu, 06/27/2013 - 20:31 | 3701575 krispkritter
krispkritter's picture

3-way Cage Match! Sell tickets!  "When you've got just one more limb to lose, and you lose it, then the crowd loses their minds..."

Thu, 06/27/2013 - 14:48 | 3700242 Big Corked Boots
Big Corked Boots's picture

One can only hope. Half the azzholes in NJ would vote for him again.

Thu, 06/27/2013 - 15:54 | 3700598 CaptainObvious
CaptainObvious's picture

The other half of NJ would vote for him again AND invest in his future financial dealings.

Thu, 06/27/2013 - 16:00 | 3700618 yellowsub
yellowsub's picture

NJ is a union state.  They'd vote to bankrupt the state over dealing with the reality.

Thu, 06/27/2013 - 14:44 | 3700213 CharliePrince
CharliePrince's picture

aphony agency  filing charges

 

against a   phony

Thu, 06/27/2013 - 14:49 | 3700248 1000yrdstare
1000yrdstare's picture

FREE CORZINE!!!!

Thu, 06/27/2013 - 14:49 | 3700255 BadDog
BadDog's picture

This will simply stoke the rage more and provoke what they anticipate to be an opportunity.  Their playbook is now out in the open for those with eyes to see and ears to hear.

Thu, 06/27/2013 - 14:58 | 3700302 cougar_w
cougar_w's picture

American's don't do rage anymore.

Thu, 06/27/2013 - 15:09 | 3700366 Seasmoke
Seasmoke's picture

Rage Against The Machine broke up a long time ago.

Thu, 06/27/2013 - 15:06 | 3700353 Dr. Engali
Dr. Engali's picture

Are you fucking kidding me?  Rage ? there is no rage in this country any longer unless they are fighting over gay marriage or the remote!

Thu, 06/27/2013 - 15:18 | 3700423 cougar_w
cougar_w's picture

That's just not true. I saw two fat women fighting over the last case of bean dip over at Costco yesterday.

Epic.

Thu, 06/27/2013 - 14:51 | 3700260 Joebloinvestor
Joebloinvestor's picture

When they charge that little fucking weasal Gensler, I will consider them serious.

Thu, 06/27/2013 - 14:55 | 3700292 ebworthen
ebworthen's picture

When they hang Hank Paulson for treason I will consider them serious.

Thu, 06/27/2013 - 15:32 | 3700503 CaptainObvious
CaptainObvious's picture

When Bernanke admits he doesn't have a fucking clue what he's doing, than I consider them serious.

Thu, 06/27/2013 - 16:15 | 3700692 Joebloinvestor
Joebloinvestor's picture

I guess we agree, they aren't serious.

Thu, 06/27/2013 - 14:52 | 3700266 PaperBear
PaperBear's picture

Meanwhile a lot of his victims have gone bankrupt.

Thu, 06/27/2013 - 14:53 | 3700268 Inthemix96
Inthemix96's picture

I know the NSA will read this so for your lots benefit, could you pass a message on for me please?

Would you tell jon corzine if he ever has the misfortune of meeting Inthemix, I will break both his legs and one of his arms.

This disgusting piece of fucking shit should be behind a cell door, and seeing as us fucking plebs are fair game for spying, why the fuck did you lot have no clue as to what this fat cunt was up to eh?  Just doing your job you pathetic cunts was it?  One of the big men said ignore that did they?  Hes one of the ruling class you cant spy on him eh?  Or if they did just ignore it?  Just doing your job you hatefull pieces of shit eh?

If you have a file on me a few pages long, do you not think jon fucking corzine would have a few fucking ring binders worth of shit to hang him with you worthless fuckers?  Just doing your job boys eh?

Remember Nueremberg?  No excuse fuckers.  None at all.  Its about time the fucking LAW was upheld, and for it to be fucking seen to be upheld.  This man should be incarcerated for grand larceny.  Do your fucking job you fucking two bit whores.  Or at some point, the fucking public will.

Thu, 06/27/2013 - 15:02 | 3700328 ebworthen
ebworthen's picture

"Do your fucking job you fucking two bit whores.  Or at some point, the fucking public will."

Bravo!  Agreed.  Ditto.  Add me to the list you fucking NSA two bit whores.

"Give me Liberty or give me death!"

Fuckers.

Thu, 06/27/2013 - 15:09 | 3700370 Inthemix96
Inthemix96's picture

They can monitor me all they like eborthen, I'm past caring and dont give a fuck either way.

But fuckers like corzine, whether they like it or not will pay a fucking price for outrageous theft of customers money.  Fuck the NSA fuck the GCHQ, they condone this?  These fucking imbeciles sit there and monitor us while $1.6 billion goes fucking stolen and call us wrong for doing so?  Fuck them.  They are no better than the fat bearded cunt who stole the money.  No better at all.

Thats two, Inthemix and ebworthen.  Fuck them.

Thu, 06/27/2013 - 15:23 | 3700458 Sovereign Economist
Sovereign Economist's picture

Hot investment tip:  Hemp Futures.

Thu, 06/27/2013 - 14:53 | 3700269 Rainman
Rainman's picture

Another limo liberal DemoRat who had no fucking idea what was going on...right !

Thu, 06/27/2013 - 14:53 | 3700270 NOTW777
NOTW777's picture

he can always write for yahoo finance ala blodgett

Thu, 06/27/2013 - 14:53 | 3700273 buzzsaw99
buzzsaw99's picture

Our next secretary of the treasury. Pay no taxes. Same old same old. Crime pays.

Thu, 06/27/2013 - 14:54 | 3700277 jubber
jubber's picture

These are NOT criminal charges, is that correct?

Thu, 06/27/2013 - 14:55 | 3700279 samsara
samsara's picture

"Unlawful Misuse of Nearly One Billion Dollars of Customer Funds and Related Violations "

So that is the fluff news,  someone stole A BILLION dollars of customer funds.

Here's the Hard Crime and the guy is going to do Hard Time. 

California man faces 13 years in jail for scribbling anti-bank messages in chalk

He left behind scribbled slogans such as "Stop big banks" and "Stop Bank Blight.com."
 in kids washable chalk on the sidewalk

http://rt.com/usa/california-man-13-prison-banks-237/

 

 

Thu, 06/27/2013 - 15:01 | 3700327 cougar_w
cougar_w's picture

If they feel that strongly about sidewalk chalk, then the next disgruntled guy may just go staight to the lead and double his satisfaction.

Thu, 06/27/2013 - 14:58 | 3700309 wonderatitall
wonderatitall's picture

not guilty. he black...some crazy ass craka did it...all else fail, hes a democrat ,they dont go to jail they put people in jail

Thu, 06/27/2013 - 15:00 | 3700317 digalert
digalert's picture

Corzine will go down in history as a verb, as in:

"you've been corzined"

Thu, 06/27/2013 - 15:45 | 3700562 CaptainObvious
CaptainObvious's picture

Not just a verb, my friend.  The word "corzine" wears many grammatical hats.

corzine (n.) - a slimy, weasel-like nocturnal creature that is attracted by the sound of clinking coins and politician's bluster.

corzine (v.) - 1.  to steal the entire net worth of a financial company and give a pittance back

2.  to commit a crime and get away scot-free

3.  to eat babies while raping their parents up the ass

corzined, corzining, corzone

corzine (adj.)  - an expression of admiration for action that everyone knows to be wrong, but no one stops the commission of

ex.: "Dude, you're fucking your english teacher?  That is so totally corzine!"

corzinely (adv.)  - shamelessly, dishonestly

ex.:  "You reprogrammed that Diebold for the election so corzinely!"

corzinefication (n.) - the process by which most Americans are routinely robbed of their earnings without legal repercussions.

Thu, 06/27/2013 - 15:01 | 3700322 BlankfeinDiamond
BlankfeinDiamond's picture

The greatest penalty for Corzine would be impoverishment, but assuming he has stashes hidden in secret accounts around the world, that's unlikely to be possible. Beheading would be my next choice.

Thu, 06/27/2013 - 15:12 | 3700345 cougar_w
cougar_w's picture

He doesn't have to stash anything; this is civil not criminal. It is like a dispute over a fee, nothing more. He can keep whatever he took, and pay whatever laughable fine they come up with. Won't even be banned from operating in the exact same way later, or doing it all over again as often as he wants to with whoever is willing to trust him with their money.

Oh and if anyone is wondering -- yes the entire financial and commodities industry is watching this play out. They are all of them now looking at their books and wondering how much co-mingled funds they can abscond with at what penalty. And they will take out a CDS with Citi to cover the penalty. And if they don't currently manage any co-mingled funds, they will shortly come up with innovative new products to maximize client return on investment by leveraging client funds across more market segments.

Thu, 06/27/2013 - 15:03 | 3700333 Optimystic
Optimystic's picture

Where are the criminal charges?  This is bullshit.

 

Thu, 06/27/2013 - 15:04 | 3700340 Seasmoke
Seasmoke's picture

Hank Paulson has to be laughing at this fuckup.

Thu, 06/27/2013 - 15:04 | 3700341 PontifexMaximus
PontifexMaximus's picture

What a real friend Gary Gensler is, you really can count on him! I am so glad that we can count on people like him.

Thu, 06/27/2013 - 15:13 | 3700395 Rainman
Rainman's picture

Squid alumni always take care of their own .

Thu, 06/27/2013 - 15:33 | 3700507 ChanceIs
ChanceIs's picture

Gensler isn't the issue.  It is Holder.  I know this case made it over to the DOJ.  There was lots of talk about giving the woman immunity but Holder wouldn't do it.  She was all ready to sing like a bird.

IMO, a civil trial is does not preclude a criminal case.  That would not be double jeapordy.  Rather the criminal case comes first because if the state wins that, it is merely a matter of setting a fine over on the civil side.  We all learned from OJ that there is not double jeapordy.

What we need to know from DOJ - available through FOIA (?) - is what went into the file as to why they didn't prosecute.  There shouldn't be word one about striking deals with CFTC.  That doesn't matter.  Last I heard in the press from DOJ from last August was that "things had become unclear." Or was it..."the trail had grown cold."  It sounds to me like CFTC has a case and the only issue is why the civil evidence isn't good enough from criminal prosecution.

Thu, 06/27/2013 - 15:05 | 3700342 RaceToTheBottom
RaceToTheBottom's picture

Steal a billion, pay a 100 million fine...... Not a disincentive at all...

Thu, 06/27/2013 - 15:20 | 3700440 cougar_w
cougar_w's picture

Financial innovation at its best, right there.

Thu, 06/27/2013 - 16:43 | 3700862 MeelionDollerBogus
MeelionDollerBogus's picture

ya but HSBC had no need to return the money they moved to get the profits, or the profits, whereas Corzine didn't profit off the move, merely the principal was moved unlawfully, and 100% restitution means "not permitted" to keep it.

Thu, 06/27/2013 - 20:38 | 3701598 RaceToTheBottom
RaceToTheBottom's picture

The company did not go under, directly then.....  That means he got value or profit out of it.

 

Attempted murder is a crime as well.  I have never heard that after getting caught, and returning the money is justification of no crime occuring.  Or maybe that is the problem....

Thu, 06/27/2013 - 21:39 | 3701914 MeelionDollerBogus
MeelionDollerBogus's picture

it's an improvement regardless.

In a world where murder is called "patriotic heroism" to suddenly charge someone with the crime for the first time in recent memory IS progress.

Thu, 06/27/2013 - 15:05 | 3700352 Bearwagon
Bearwagon's picture

Hope that'll teach 'em whom to call "Honorable" ....

Thu, 06/27/2013 - 15:32 | 3700504 Ms. Erable
Ms. Erable's picture

I'm sure they'll still use 'Honorable' in front of his name. Mainly because 'Lowdownthievingtwobitratfuckingasshatsonofawhoredouchenozzle' doesn't fit on a table placard.

Thu, 06/27/2013 - 15:06 | 3700354 Whiner
Whiner's picture

"Prepacked Civil Suit" Large fine, no admission of guilt.

Thu, 06/27/2013 - 15:08 | 3700362 X86BSD
X86BSD's picture

This entire magic show reminds me of this...

http://youtu.be/tHgMsvpFm08

"How do you plead?"
"Not guilty!"

Indeed.

Thu, 06/27/2013 - 15:11 | 3700378 Sovereign Economist
Sovereign Economist's picture

CFTC charges Corzine?  This is backwards... why not have Corzine officially charge the CFTC???  6 of one, half dozen of the other.  Two crooks against each other in a bought and paid for courtroom.  Hell, they could charge admission for that!  Oh wait... they already do huh?

Thu, 06/27/2013 - 15:11 | 3700385 steelhead23
steelhead23's picture

Tyler, as regards your anticipated wrist-slap settlement, if the CFTC had intended to settle, there would have been a consent decree or settlement filed with the court instead of a lawsuit and request for injunctive relief.  I think.  History is clearly in line with your interpretation, but I imagine that Senator Warren's staff is all over CFTC on this and I also suspect that David Meister is uninterested in answering Senator Warren's questions if he chooses to settle.  Hence, Corzine had better lawyer up - and transfer all his wealth into a family trust.

Perhaps we should have a poll.  Will the CFTC settle with Corzine et al., or, does this go all the way through the court?

Thu, 06/27/2013 - 15:13 | 3700399 Sovereign Economist
Sovereign Economist's picture

None of the above... someone will make a phone call, and someone will take a phone call... and that will be that.

Thu, 06/27/2013 - 15:23 | 3700457 cougar_w
cougar_w's picture

Yup. The CFTC can show they did their job, and Corzine continues to walk free, and nobody need ever feel awkward when they run across each other on the 8th hole.

Thu, 06/27/2013 - 16:52 | 3700888 BidnessMan
BidnessMan's picture

Corzine pays a fine but admits no guilt, and retains $50M+ of personal assets. Edith gets 2+ years at the Martha Stewart prison and then leaves utterly destitute, having been bled dry by legal fees.

Why hasn't Edith been able to get immunity for testifying like happens in all other cases like this? Someone needs to go to jail for PR purposes, and Edith is the patsy.

Thu, 06/27/2013 - 15:13 | 3700393 gold mans sack
gold mans sack's picture

Makes a slap on the wrist seem like a baseball bat beating.

Thu, 06/27/2013 - 15:14 | 3700403 bluskyes
bluskyes's picture

I wonder if he lost some Chinese investor's money, perhaps they could extradite him to China. I would gladly pay $100 to watch a good, old fashioned caning on pay per view.

Thu, 06/27/2013 - 15:16 | 3700413 pherron2
pherron2's picture

"includes 100% restitution of the approximately $1 billion lost by all commodity customer."

I think they're missing a zero on the end of that

Short of that, the sonofabitch ought to be keel hauled

Thu, 06/27/2013 - 15:18 | 3700426 moneybots
moneybots's picture

Where is the criminal prosecution?

Thu, 06/27/2013 - 16:01 | 3700620 hmmmstrange
hmmmstrange's picture

One year to bring case to court, 6 months for trial, 1 year for appeals while out on bail. That leaves only 1 year of jail time at most until he gets his pardon. They know even if they prosecuted there would likely be very little if any jail time, that's why they settled with a fine.

Thu, 06/27/2013 - 15:21 | 3700448 WTFUD
WTFUD's picture

100 hours CONmmunity service picking up Obumbas sliced golfballs!
Aah poor lamb!

Thu, 06/27/2013 - 15:30 | 3700488 Staplegun
Staplegun's picture

Anyone remember Karla Katz? Yet another stellar chapter in the Corzine history. 

Thu, 06/27/2013 - 15:31 | 3700495 debtor of last ...
debtor of last resort's picture

Mr. Corzine under the bus, together with paper metals. Medal of honor for mr. Snowden. 50% of all mortgages written off.

Thu, 06/27/2013 - 15:36 | 3700522 Nue
Nue's picture

The big question is will Obama use the Robo-pen to sign his pardon or will he give he actually sit down with a pen for this one.

Thu, 06/27/2013 - 15:50 | 3700582 Umh
Umh's picture

Are they getting the gold or are they getting the cash value it had when it was stolen? Maybe they will get the cash value it would have now.

Thu, 06/27/2013 - 15:53 | 3700590 hmmmstrange
hmmmstrange's picture

Who can petition the court to reject the plea?

Thu, 06/27/2013 - 16:58 | 3700884 Trampy
Trampy's picture

Jon Corzine and Edith O'Brien, for starters, can challenge the terms, because they have standing. 

It's not a "plea," it's more a "settlement proffer."

Do NOT follow this link or you will be banned from the site!