Regulators to sue MF Global head Jon Corzine

June 25, 2013 at 5:40 PM
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NEW YORK, June 25 (UPI) -- Law enforcement officials said regulators are close to filing a lawsuit against former MF Global head Jon Corzine over misuse of client funds.

Former New Jersey Gov. Corzine ran MF Global until it went bankrupt in 2011.

Corzine is expected to be charged with allowing more than $1 billion in customer money to disappear as the investment firm collapsed, The New York Times reported Tuesday.

"If the Commodities Future Trading Commission brings this enforcement action, Mr. Corzine would welcome the opportunity to litigate this matter in an impartial venue, free from politically influenced prejudice and unfounded assertions, which have been frequently repeated despite the lack of a factual basis," said Steven Goldberg, a spokesman for the former governor.

A lawsuit "is not surprising considering the political pressure to hold someone liable for the failure of MF Global," said Goldberg.

The collapse of MF Global was the largest Wall Street failure the 2008, when Lehman Brothers was the poster child for the financial crisis.

No one was charged with any crime after the Lehman Brothers collapse, the Times said.

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