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.