Jon Corzine Settles Over MF Global Collapse: Agrees To Lifetime Ban, $5 Million Fine

Tyler Durden's picture

Three years ago, in February 2013, traders were outraged upon learning that the National Futures Association refused to ban former MF Global chief Jon Corzine from trading with other people’s money, rejecting a motion brought before that body’s board of directors to do so. The decision was a blow to a vocal group within the commodities trading world who - noting that Corzine has not been held accountable by the government for alleged crimes - wanted to see him publicly upbraided by his peers in the market. 

All that changed today when Corzine agreed to pay a $5 million civil fine to settle a lawsuit by the U.S. Commodity Futures Trading Commission over the 2011 collapse of the former New Jersey governor's brokerage, MF Global Holdings. More importantly, under the settlement disclosed on Thursday, Corzine also agreed to be barred for life and never again work for a futures commission merchant, or register with the CFTC in any capacity.

Which means Corzine's dreams of running a hedge funds are now over.

"I am pleased to have reached this settlement to resolve the CFTC’s claims," Corzine, 70, said in a statement. "As the CEO of MF Global in 2011, I have accepted responsibility for its failure, and I deeply regret the impact it had on customers, employees, shareholders and others.”

The CFTC alleged Corzine failed to fix inadequate controls that led to $1 billion in missing customer funds and knew of the New York-based firm’s extreme cash shortage. The agency also said he didn’t ask questions about the origins of funds used to make transfers that he had ordered. Corzine previously said he never directed the misuse of customer funds to help his firm stay afloat as it dealt with margin calls on bad bets in 2011 as Bloomberg notes. He testified to Congress that he asked that overdrafts with JPMorgan Chase & Co. be corrected. In 2013, MF Global’s brokerage unit was fined $100 million by the CFTC and admitted regulatory failures.

Edith O'Brien, MF Global's former assistant treasurer, agreed to pay a $500,000 civil fine and accept an 18-month ban to settle related claims.

Thursday's settlement resolves the last piece of litigation against Corzine stemming from MF Global's Oct. 31, 2011 bankruptcy.

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Bill of Rights's picture

Scumbag prick got a slap on the wrist...Come clean John tell us what you really know.

XqWretch's picture

is that surprising to you?

froze25's picture

Not one bit, Oh the money evaporated.... Still makes my blood boil. Guess he had to settle before Trump took the helm and would go to jail.

InjectTheVenom's picture

Corzine :

>>>   Hang him   or

>>>   Fine him.

JRobby's picture

Accidentally shot in the face

pathosattrition's picture

Wow. 0.5% fine! So Justice!

Joe Davola's picture

Honest question - did the corn farmers ever get their money back?

Au_Ag_CuPbCu's picture

Let's see...I steal $1B and get fined $5M...great return, good work ASSHOLE!

Save_America1st's picture

he only settled because of Trump.   he knew he was fucked as soon as Hitlery lost the election.   By settling now with just a slap on the wrist,  even though he might be out 5 million (deferred over the rest of his life which he prob won't pay) he probably can't end up being charged with anything further by Trump's new DOJ team. 

SilverRhino's picture

Publicly impale this miserable fuck Corzine.  

PT's picture

You beat me to it.  I doubt this would have been settled if Hillary had been in charge.

"Settled"?  Slap on the wrist plus the 70 yo might be forced to retire.  Winning?
BTW, missing 1 billion or 1.6 billion?

Funny how numbers "deteriorate" over time.

kliguy38's picture

death is too good for this parasite

eatthebanksters's picture

Let's of Barry's biggest bundlers and former democratic Senator and Governor from New Jersey and his case settles 15 days before Barry leaves office so Barry doesn't have to pardon him.  Fuck, this is crony shit at the highest level.  These peeps care not about anyone but htmeselves and their corrupt buddies.  Hang em all high!!

Four chan's picture

how to pocket a billion dollars tax free by j corzine.

CheapBastard's picture

Steal a billion since you pnly pay a little fine and NEVER go to jail.


Obama's Above The Law club gets bigger every day. No wonder these kids protest on campus against the swamp of corruption in DC.

azusgm's picture

IIRC, the farmers were in distressed situations and many sold their claims to vultures for $0.70 on the dollar. Illiquid otherwise.

When we ZH'ers have said, "Free Jon Corzine", we assumed the sarc was implied. Now Jon Corzine gets off for essentially free. He has had over 5 years to invest that $5 million in the FANGs. The guy is 70 years old. Is he really seaking a full-time job?

Justice denied.

jeff montanye's picture

i am tempted to link to the lonesome death of hattie carroll again but jon corzine really demands individual attention.

sodbuster's picture

Friend of mine had crop hedges there. I believe he got nearly all his money back. Had to wait a good long while though. I will check with him again.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) JRobby Jan 5, 2017 2:40 PM

I'm starting a Bitcoin-based gofundme groupon micro-loan social media multi-level marketing conglomerate startup to free Jon Corzine. Won't you join muh?

Croesus's picture

@ Draybin:

The check's in the mail, buddy!

What were your thoughts on the BTC action in China today?


Dragbin got ass raped by the Satoshi Precious today, Hedgies. 

Croesus's picture

@ Silvergeddon:

I was a grade-A fool, when it came to BTC. My buddies were asking me about it, when it was <$10...could have cleaned-up on it, and gotten out, virtually tax-free...C'est la Vie.

I consider Draybin to be the most knowledgeable BTC SME on this site. He recently helped me out with a tech-related question, and I'm grateful for his expertise on that, too.

Gotta give the man his props; he called it right, while the Johnnie-come-lately's in PM's were getting slaughtered.

BennyBoy's picture


First he fucked over NJ.

Then he fucked over MFG customers.

And he gets a mere $5m fine and ban now that he's retired?

Fuck Corzine!

And fuck the Crony CFTC!

Bill of Rights's picture

Whats surprising is, he's still alive....

MsCreant's picture

1.2 Billion reasons to be surprised. Even Celente should have a contract out on this guy.

PT's picture

Any minute now a gang of yoots is gunna beat him up and post it on Face book becoz , umm, ummm, they always no when to dispense justus and unnerstand all this high-falootin white collar crime stuff and, umm, umm, yeah, any minute now, its gunna happen soon, mark my words, my face won't even have a chance to turn blue ... I'm telling ya ...

PT's picture

In other news, over the next two weeks suddenly a long stream of other people get "convicted" of their crimes and slapped on the wrist just before Trump takes over the reins.  It's just a coincidence.  Nothing to see here ...

jeff montanye's picture

looks better than pardons, to the casual observer.

sessinpo's picture

Not really.

Consider how many of these thugs are still around after all the shit they have pulled for decades. The list goes on and on

Soros, Kissinger, Paulson, ...., on and on and on.

Same reason when the system finally finally goes down, most of them will use their economic mobility and move to greener pastures, while the serfs get fucked again. All the tough talk about hanging them and making sure they get punished is just that, talk. It never really happens. At most we get one or two sacrficial lambs but nothing really changes.


I hope Corzine becomes a nail gun demo prop, no limit on nails.

BabaLooey's picture


...the ambulance will take 5 MILLION SECONDS TO GET TO YOU....

No words can properly describe this piece of filth.

jaap's picture

Glad tht they finally released him from prison.

reload's picture

His cell is need for the autistic young Brit who built an algorithm that made a fool of the fed backed ones. Extradition and a lifetime in high security assured after a fair trail behind closed doors. Justice all round - NOT

hedgeless_horseman's picture


Your comment makes me sick.

Raffie's picture

BWHAHAHAHAHA $5 mil.. WOW..... so his TAKE A PENNY DISH is now empty.

Oh how will he ever get by in life?

Stroke's picture

This FSOB (fuckin' son of a bitch) got off cheap....& no jail time....It's good to be a 1%er

Henry Rearden's picture

I don't understand how a lifetime ban effects someone who is about to have a nail gun accident. 

XqWretch's picture

Who needs a nail gun? The guy is 70. He is going to die soon anyways.

29.5 hours's picture

Well, we are all going to die soon enough. However, some people may deserve to die sooner...

InjectTheVenom's picture

slowly & painfully i hope !

Bill of Rights's picture

I keep saying the same about SOROS yet the fucker is still breathing.

azusgm's picture

David Rockerfeller...

Darth Cheney...

Pappy Bush...

jeff montanye's picture

we so need a truth tribunal like south africa.  just tell us the truth; no additional penalties.  it's a fair deal from a long perspective.

29.5 hours's picture

<< "I am pleased to have reached this settlement to resolve the CFTC’s claims," Corzine, 70, said in a statement. >>

If Corzine is pleased then we know it's another swindle, aided and abetted by government toadies. I guess it would be pathetically old-fashioned to say, "this is not justice."


buzzsaw99's picture

a real specimen he is.

Crash Overide's picture

Perfect example of how criminal behavior pays better than legit work...