Corzine to pay $5M penalty to resolve MF Global case
Source: Associated Press
WASHINGTON (AP) — Jon Corzine, the former New Jersey governor who led the collapsed brokerage MF Global, has been ordered to pay a $5 million penalty for his role in the firm's alleged illegal use of almost $1 billion in customer funds.
A federal court in Manhattan on Thursday issued the order against Corzine, in line with civil charges brought against him in 2013 by the U.S. Commodity Futures Trading Commission.
Following the stunning collapse of the big Wall Street firm in late 2011, the CFTC alleged that MF Global dipped into customer funds in a vain attempt to remain solvent. Corzine failed to closely supervise the handling of customer money by the firm's employees, according to the order.
Corzine, who was the CEO of Wall Street powerhouse Goldman Sachs before entering politics in 2000, was banned by the court order from serving as an official or employee of any commodities trading firm. He also was banned from trading other people's money in most commodities and other investments regulated by the CFTC, with some limited exceptions.
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Read more: http://bigstory.ap.org/article/f22a6f632273493ba1372f923517088c
By MARCY GORDON
Jan. 5, 2017 7:19 PM EST
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