Ex-CEO Jon Corzine Sued By Former FBI Director Louis Freeh For MF Global Collapse

[DonViejo]

Source: AP/TPM

CHRISTINA REXRODE APRIL 23, 2013, 9:46 AM

NEW YORK (AP) — The trustee in the MF Global Holdings bankruptcy case has sued ex-CEO Jon Corzine and two other former executives, alleging that they “failed to act in good faith” while running the company.

The lawsuit, filed Monday in bankruptcy court in New York, says Corzine and others “dramatically changed” the company’s business plan “without addressing existing systemic weaknesses that ultimately caused the plan to fail.”

The lawsuit says that Corzine allowed the company to take on risky trading strategies that weren’t properly monitored. MF Global collapsed in October 2011 after a calamitous bet on European bonds.

Former FBI director Louis Freeh is the trustee overseeing the wind-down of MF Global and trying to recover money for creditors. Creditors have not received any payments so far.

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[Hell Hath No Fury]

1. Good.

I don't care what Party the guy was with, he appears to be a crook. One down, 100s more to go...

[AngryAmish]

2. Corzine stole the money to pay off his bets on Greece

Then he claimed it was poor oversight by lower level folks.

Bullshit. This company was functioning well until he decided to gamble with money he did not have.

I hope they take all of his money.

[waddirum]

3. I don't understand why...

... he hasn't been criminally charged.