​John Corzine Civil Charges For Missing Funds​​

By: | 06/27/2013 07:16 PM ET

John Corzine is facing civil charges by the Commodity Futures Trading Commission and the futures firm MF Global. Corzine is connected with the customer funds that went missing in the last days before the firm collapsed.

John Corzine Civil Charges By Commodity Futures Trading Commission

MF Global agreed to pay a $100 million penalty and pay all of the money still owed to customers, as part of the settlement deal with regulators.

The CFTC found that former Assistant Treasurer Edith O’Brien was responsible for improperly transferring some of the missing customer funds to other accounts in the final days before MF Global went under, to help pay off some of the firm’s other debts. O’Brien was charged with “aiding and abetting” the misuse of the funds.

MF Global collapsed in October 2011 under the weight of aggressive bets on sovereign debt, thin capital and questionable disclosures to investors. Customers were left reeling after it was revealed that more than $1 billion of their money could not immediately be found.

Corzine, a former co-chairman of Goldman Sachs and New Jersey governor, was charged with violating his legal obligations to diligently supervise. He was also charged with not acting in good faith as a “control person” at the firm.

The CFTC is seeking “full restitution and penalties against Corzine and O’Brien, as well as trading and registration bans against them,” according to Reuters.