As Day In Court Looms, Corzine Tries To Settle MF Global Fraud For Just $5 Million

Tyler Durden's picture

Five years after MF Global's collapse after big, levered bets on European bonds blew up leaving a $1.6 billion shortfall in customer funds, WSJ reports former New Jersey Gov. and Goldman Sachs CEO Jon Corzine is nearing a deal to pay $5 million to end a U.S. regulator’s lawsuit.

Ending what The Wall Street Journal calls a long and messy chapter in a four-decade career which touched the pinnacles of Wall Street and politics...

Mr. Corzine reached the tentative settlement with the Commodity Futures Trading Commission in June, submitting to a ban from trading client money in commodities and others assets regulated by the commission, the people said. A final deal has been on hold as the commission negotiates a resolution to its case against another former executive at MF Global, the people said. The terms may still shift ahead of a final deal, several people said.

 

Mr. Corzine has denied wrongdoing and said he never directed anyone to dip into customer funds.

 

Criminal prosecutors investigated the roles Mr. Corzine and other executives played in the shortfalls, but brought no charges. A federal judge approved a $132 million settlement between former MF Global executives, including Mr. Corzine, and the firm’s customers earlier this month, resolving most of the legal headaches stemming from MF Global. Only the CFTC case remained unresolved.

 

The CFTC sued Mr. Corzine and a top lieutenant in 2013 in a civil case and accused them of overseeing the misuse of nearly $1 billion in customer funds. In the lawsuit, regulators said Mr. Corzine “bears responsibility” for the New York firm’s unlawful actions and said the two violated the Commodity Exchange Act, which requires brokers to segregate customer funds.

The CFTC case against Mr. Corzine and MF Global’s treasurer, Edith O’Brien, had been scheduled to go to trial next month, but that date was canceled as both former executives worked to reach a deal with the agency, according to court records.

It's good to have friends.

Mr. Corzine’s agreement was presented to the three-member commission in June, but was met with questions from both Democratic commissioner Sharon Bowen and Republican J. Christopher Giancarlo, according to people familiar with the discussions. At least one of the commissioners asked whether the deal sufficiently punished Mr. Corzine and whether his agreement was fair compared with a deal that Ms. O’Brien would receive, the people said.

Finally, we note that, as of May, MF Global’s insurers had covered $97 million worth of legal defense costs for the company’s sued executives, court papers say. The earlier settlement relied on the remaining insurance coverage of $184 million, with some funds reserved for the CFTC action.

As WSJ concludes, it is also unclear if Mr. Corzine can use insurance money to cover the CFTC penalty.

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Jim Sampson's picture

Just burn the fucking place down!

hedgeless_horseman's picture

 

A day in court looms.

Paging Jack Ruby.  Please pick up the wiped courtesy FN.

yrad's picture

The age old question, "WHERE THE FUCK IS JON CORZINE!?!?!"

 

Finally answered.

Bilderberg Member's picture

In other news, Bernie Ebbers is still in prison.

jcaz's picture

You ain't settled with the people you stole from, motherfucker-

That comes later....

roddcarlson's picture

Reminds me of a scene in Braveheart where the Judas like character wakes up to Mel Gibson (William Wallace) over the top of him. I fear for them that they have to sleep sometime, me I wouldn't want fame at all. I'll take a certain amount of wealth but not noticeable amounts and would rather live isolated on a plot of land far way from high density populations. Because it's going to be hard enough to survive having an extra bag of rice in storage, much less being a Corzine.

lance-a-lot's picture
lance-a-lot (not verified) roddcarlson Oct 6, 2016 9:28 PM

Someone should remind Corzine of the 11 not 10 Commandments.
http://wp.me/p4OZ4v-3lk

The Saint's picture
The Saint (not verified) lance-a-lot Oct 6, 2016 10:27 PM

Hmmmm.  I thought John Corzine was holded up in an Equdorian Embasy somewhere.

 

Manthong's picture

He’s got a lot of balls trying to get off that cheap.

Hmm… well, maybe if he submitted to castration it might be a bit fairer.

 

eatthebanksters's picture

Corzine wants to settle this case before Trump becomes POTUS.

Nobody For President's picture

Yep, that was my thought. Early this year (or late last) he threw a fund-raiser for the Cankles at (yes) his place in the Hamptons.

You can't make this shit up.

SoDamnMad's picture

My thought was to use two bricks and clap them. Jon would be blindfolded and we could do a couple practice claps before we struck... oil

OR something else.

Boris Alatovkrap's picture

Too bad is survive vehicular accident in 2007…

http://www.nytimes.com/2007/04/13/nyregion/13corzine.html

Where is hand of fate when you are need it!?

El Oregonian's picture

"Criminal prosecutors investigated the roles Mr. Corzine and other executives played in the shortfalls, but brought no charges."

If ever someone needed a Nailgunbotomy, This slimy turd would be the perfect candidate... 

RaceToTheBottom's picture

Wondered what happened to that deep web hit man bidding system?

1980XLS's picture

Hw was not wearing a seatbelt in that incident, despite it being the law.

"do as I say, not as I do. Laws are for little people"

NoDebt's picture

He has done HUGE fundraisers both for and WITH Hillary Clinton.  Job well done, Jon.  You can relax now.  It's all taken care of.

 

Ness.'s picture

Corzine is a fucking monster.  They are all monsters.  I'm not just talking about JC.  I'm talking about the whole Chicago/NYC/NJconnections.  Obama (CHI), Hillary (CHI/NY), Corzine (born in Il, studied in Chi, then off to NY/NJ).  Corzine fucked over 1000's of hard working people.  Small pit traders who had segregated accounts with MFG had their accounts frozen.  They were forced to cover postions/margins without access to their OWN FUCKING MONEY.  We (MFG) take your trading account $, force you to puke out of positions and let the lawyers bleed you dry with legal BS with motion after motion.  The great employees of MFG got a big ass fucking as well.  Grab a box, clean out your desk - you gone!  And yet that cocksucker walked out the front door with millions.  That's old school Chi/NYC/NJ mafia bullshit.  And you know who oversaw the whole fucking thing?  You can find the list by looking at the donors to the DNC.  

You know who can also relax now?  Tony Rezko.  Have we all forgotten about Tony?  How's things going in Syria, Tone?  Obama loves the great deal you gave him on the property.  Sorry you had to go to prison but BO got that Syria thang going just as you planned.

Ok - enough of me.  This obviously hits home.  But if you have the time, research the Tony Rezko Syria/Obama connection  while you're fuming over Corzine.  We are running out of time poeple.

http://dailycaller.com/2015/11/23/heres-obamas-other-syrian-problem/

 

BorisTheBlade's picture

Wait, are you saying Hillary won't be inquiring about Corzine's tax returns? If so, then the road is clear for this honourable representative to hold public office, treasury secretary for example,  I mean he is no less qualified to run finances than Hillary to run the entire country.

SilverRhino's picture

He should be swinging from a yardarm.

azusgm's picture

Ann Barnhardt should be posting something about Corzine soon. What went down with MF Global and Corzine was enough to cause her to close her business as an introducing broker in the cattle market. She got out of the business and I got out of the stock market in short order after seeing what was going on.

She probably has a few choice words saved up for such a time as this. In the meantime, here is "Yes, MF Global was the Direct Antecedent to Cyprus".

http://www.barnhardt.biz/2013/03/17/yes-mf-global-was-the-direct-anteced...

Although Jon Corzine is set to be banned from engaging in some sorts of financial business, what is to stop him? Really. He lacked two licenses he needed to be able to run MF Global, but that did not stop him. What a disgusting joke. Corruption in an expensive suit.

thinkmoretalkless's picture

Huddling with Hillary for debate prep

MFL5591's picture

Should be settled with a hanging!

Never One Roach's picture

If there is a God......

 

Am I bad?

Down to Earth Thinking's picture

And the Dems claim Trump is a bad guy. What a fucking joke it all is here in USSA today. 

 

Nothing more than a giant criminal enterprise on your dime. I hope Louie and Vito catch up with this cocksucker ! 

Boris Alatovkrap's picture

Boy, just to get wooden nickel from bankster is major victory, no?!

robnume's picture

Boris, isn't this a great country? You, too, can lie cheat and steal your way to an ambassadorship, goverrnorship or some other cushy taxpayer funded "position of power" if you know how the game is played. It's GREAT to be an American! Go, USA!

Boris Alatovkrap's picture

It is not WHAT you know, it is WHO you know, and who you are willing to rape and be rape.

City_Of_Champyinz's picture

Fuck that rat bastard cocksucker.

nmewn's picture

"former...>>>DEMOCRAT<<<...New Jersey Gov. and Goldman Sachs CEO Jon Corzine >>>is nearing a deal<<< to pay >>>ONLY<<< $5 million to end a >>>U.S. regulator’s<<< lawsuit.'

Fucking fixed.

GUS100CORRINA's picture

Everytime we see this kind of thing happen in America, it is like a cancer that eats away at society's moral fiber. 

This kind of thing can only lead one place: Heightened level of LAWLESSNESS.

nmewn's picture

Making it even worse, they do it all under the "pretense of law". 

I say again, Hitler had "laws" and Mao had "laws"...this is just another example of exactly no difference in the regulatory/justice-state of Hitler & Mao than Vichy DC.

Who gets to "misapproprate" over a billion dollars of money THAT IS NOT THEIRS and then attempts settle (without being laughed out of the room) for pennies on the dollar?

Comrade Corzine thats who.

Pigeon's picture

If I robbed a bank of even $10, I would probably be forced to pay penalties of 1000x that amount and go to jail for at least 8 years.

Clearly, I need to set my sights higher - obviously there is "no intent" if you rob $1.6B and lie about it and destroy records.

Boris Alatovkrap's picture

You must learn it art of confidence… first, you are create image of trust, then people are trust fiduciary you with their money. You are issue statement of account to stake holder, and pay yourself salary in large. Then one day, you are shift and move depositor/investor money, account to account, and poof!, it is dissappearing! Now you are rich, they are not so rich. You are not commit crime, just stupid people are trust you, that is not crime!

Kidbuck's picture

The cheap bastard couldn't spring for the Comey burger?

SenselessPanic's picture

I closed my refco account just in time!  Fuck that guy too!

HRH of Aquitaine's picture
HRH of Aquitaine (not verified) Oct 6, 2016 7:57 PM

So this pig steals more than a billion dollars, doesn't go to prison, and gets to pay a fine of only $5 million? Now I call that a hustle! Nice if you can get away with it.

GRDguy's picture

"Nice if you can get away with it" is exactly the attitude that enables the financial sociopaths to continue to lie and steal from us.

HRH of Aquitaine's picture
HRH of Aquitaine (not verified) GRDguy Oct 7, 2016 1:06 AM

I forgot this: /s

(Starting off by calling him a pig is a clue.)

Kaiser Sousa's picture

KILL THEM ALL...

R U PROUD OF YOUR REPUBLIC AMERIDUMBS????

DEATH TO THE FUCKING MONEYCHANGERS.

City_Of_Champyinz's picture

60-75% of random people you ask probably do not know what the definition of 'republic' is, and are unaware that they live in one.

HRH of Aquitaine's picture
HRH of Aquitaine (not verified) City_Of_Champyinz Oct 7, 2016 1:08 AM

90%.

CryptBrain's picture

Quick!

Get Elizabeth Warren to bark at him for 10 minutes on C-SPAN before passing GO

SillySalesmanQuestion's picture

It lives...

"If it bleeds, we can kill it..."

Fuck you Corzine!

gregga777's picture

There's a noose somewhere with his name on it.