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MF Global ordered to pay $1 billion restitution

Former Gov. Jon Corzine, D-N.J., former chairman and CEO of MF Global, testifies during a House Financial Services Committee Oversight and Investigations Subcommittee hearing on the collapse of MF Global, on Capitol Hill in Washington, D.C. on December 15, 2011. UPI/Kevin Dietsch
Former Gov. Jon Corzine, D-N.J., former chairman and CEO of MF Global, testifies during a House Financial Services Committee Oversight and Investigations Subcommittee hearing on the collapse of MF Global, on Capitol Hill in Washington, D.C. on December 15, 2011. UPI/Kevin Dietsch | License Photo

NEW YORK, Nov. 18 (UPI) -- A federal court in New York has ordered MF Global to pay $1.2 billion in restitution for mishandling client funds, U.S. regulators said.

The Commodities Futures Trading Commission said U.S. District Court Judge Victor Marrero also ordered the firm to pay a $100 million civil penalty.

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The Wall Street Journal reported Monday the firm admitted allegations in a complaint filed by the CFTC.

The firm filed for bankruptcy protection in 2011. Concerns about client funds quickly surfaced. A court trustee later estimated that $1 billion in client funds had been used to cover the firm's trading losses.

MF Global was run by former New Jersey Gov. Jon Corzine, who was chairman and chief executive officer.

The commission said it was still pursuing a case against Corzine. Last week, Marrero refused to dismiss a civil lawsuit filed against Corzine and other MF Global executives.

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