Former MF Global CEO Handed $5m Fine

Former MF Global CEO, Jon Corzine, has been fined $5 million and banned from working as a Futures Commission Merchant (FCM).

The US Commodity Futures Trading Commission (CFTC) announced today that it has obtained a federal court consent order against Corzine requiring him to pay a $5 million civil monetary penalty for his role in MF Global’s unlawful use of customer funds totaling nearly $1 billion and for his failure to diligently supervise the handling of customer funds.  

Under the terms of the order, Corzine cannot seek or accept, directly or indirectly, reimbursement or indemnification from any insurance policy with regard to the penalty amount.  

The order also requires Corzine to agree that he will never act as a principal, agent, officer, director, or employee of an FCM and that he will never register with the CFTC in any capacity.  

Additionally, the former MF Global assistant treasurer, Edith O’Brien, has been handed a $500,000 civil monetary penalty for aiding and abetting MF Global’s violations and is banned from associating with an FCM or registering with the CFTC in any capacity for a period of 18 months.

“This resolution demonstrates the importance that the Commission attaches to customer protection, which has long been a hallmark of our mission,” says Aitan Goelman, the CFTC’s enforcement director. 

The CFTC previously settled charges against MF Global in November 2013 for its violations of the Commodity Exchange Act (CEA) and CFTC regulations, requiring it to pay $1.2 billion in restitution to its customers, as well as a $100 million civil monetary penalty. 

In December 2014 the CFTC obtained a federal court consent order making MF Global’s parent company jointly liable for fulfilling these requirements.

galen@profit-loss.com

@Galen_Stops

@Profit_and_Loss 

Galen Stops

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