Smoking Gun at MF Global

Bloomberg News allegedly has an e-mail from MF Global Treasurer Edith O’Brien demonstrating that days before MF Global’s collapse, Jon Corzine, MF Global’s CEO, gave “direct instructions” to his underlings to transfer $200 million from one customer account to another account in order to meet an overdraft in one of the company’s JPMorgan Chase London accounts. If this is true, it could represent a "smoking gun" tying Corzine to the loss of funds in customer accounts at MF Global. It should be noted that the e-mail is NOT from Mr. Corzine but from another executive at MF Global claiming (in real time) that Mr. Corzine had given him said instructions. It should also be noted that the $200 million is only a fraction of the monies still missing from the MF Global brokerage accounts.

Video below

Source: Bloomberg News

Also see: New Details Emerge on MF Global, but No Smoking Gun in the NY Times and Email Ties Corzine to Missing Funds at the Wall Street Journal.

  1. David Lazarus says

    This is looking more like fraud. The fact that no one is being prosecuted should worry the public. In fact the regulators should be prosecuted for failing to protect investors from fund managers. Any regulator who fails so egregiously should be disqualified from any post with responsibility such as regulator or company director for life.

  2. Tim says

    I’d “like” your comment David if I could.

Comments are closed.

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