Skip to content

MF Global CEO Jon Corzine Personally Ordered Illegal Raiding of Customer Funds

MF Global CEO Jon Corzine Personally Ordered Illegal Raiding of Customer Funds

By WashingtonsBlog

We noted last November:

Things have become so lawless in America that one investor wrote in response to the theft of over a billion dollars of client funds by MF Global:

I will never do business in the United States of America again. The system to protect futures accounts is broken. And the whole world knows knows it.

(He’s not the only one).

Indeed, countries have lost so much faith in the trustworthiness of the American financial system that they are demanding their gold back. See this and this.

Today, Bloomberg reported that MF Global CEO Jon Corzine personally instructed that $200 million dollars in customers funds be raided:

Lisa Du notes:

This bombshell may have huge implications for Corzine. Remember that a sacred rule in brokerages is that customer funds must be strictly segregated from the firm’s money. Breaking such a rule on purpose could mean criminal charges. Before MF Global fell, Corzine was a prominent figure in finance and politics, serving as CEO of Goldman Sachs in the ’90s and a Democratic senator and governor of New Jersey after that.

Yves Smith writes:

The transfer occurred on October 28, when the firm had an overdrawn London account with JP Morgan and JP Morgan was holding up business in the US as a result. It isn’t hard to imagine the firm would have failed that day as opposed to on the 31st, and with lower customer losses, had the pilfering of the account not taken place.

This was also the same transfer in which JP Morgan asked for written assurance that the funds were not coming from customer holdings. The assistant treasurer, Edith O Brien (who was also the author of the’e-mail saying that she had the approval of Corzine for the action) never provided the requested confirmation.

Note that this’e-mail contradicts Congressional testimony by Corzine:

Corzine testified that he never intended a misuse of customer funds at MF Global, and that he doesn’t know where client funds went.

I did not instruct anyone to lend customer funds to anyone, Corzine told lawmakers in December.

It isn’t hard to anticipate that Corzine will deny the O Brien’e-mail, but with the CFO on holiday during the meltdown and O Brien an assistant treasurer, it seems entirely credible that she’s seek senior level approval for an action like this. And we have this tidbit:

The memo’s account of the’e-mail exchanges aligns with what Terrence Duffy, the executive chairman at CME Group Inc. (CME), told lawmakers during a December congressional hearing. Auditors at CME, which had authority to oversee MF Global, learned from an employee of the brokerage that Corzine knew about the loans involving a European affiliate, Duffy told committee members.

Put it another way: if there isn’t some serious action after this revelation, between this and Obama’s Make America Safe for Bucket Shops Act, investors can no longer regard themselves as having adequate protection from broker chicanery.

Of course, just like the other fatcats, MF Global wants to hand out bonuses – even after going belly up and stealing customer money.

And – surprise, surprise – the government apparently tried to help MF Global cover it up.

Professor of law and economics – and senior’S & L prosecutor – Bill Black says of the MF Global fraud:

All that doeth evil hateth the light.


View the original article at Washingtons Blog

Related Posts with Thumbnails

Posted in Finance & Economics, Politics.

Tagged with , , .

Support #altnews & keep Dark Politricks alive

Remember I told you over 5 years ago that they would be trying to shut down sites and YouTube channels that are not promoting the "Official" view. Well it's happening big time. Peoples Channels get no money from YouTube any more and Google is being fishy with their AdSense giving money for some clicks but not others. The time is here, it's not "Obama's Internet Cut Off Switch" it's "Trumps Sell Everyones Internet Dirty Laundry Garage Sale".

It's not just Google/YouTube defunding altenative chanels (mine was shut), but Facebook is also removing content, shutting pages, profiles and groups and removing funds from #altnews that way as well. I was recently kicked off FB and had a page "unpublished" with no reason given. If you don't know already all Facebooks Private Messages and Secret Groups are still analysed and checked for words related to drugs, sex, war etc against their own TOS. Personally IU know there are undercover Irish police moving from group to group cloning peoples accounts and getting people booted. Worse than that I know people in court at the moment for the content they had on their secret private group. Use Telegrams secret chat mode to chat on, or if you prefer Wickr. Or if you need to, buy a dumb phone with nothing for the NSA to hack into if you are that paranoid. Ensure it has no GPS tracking on it and the battery can be removed. These are usually built for old people to get used to technology storing only a set of numbers to call. However they have no games, applications to install and other ways people can exploit the computer tracking device you carry round with you most of the day.

So if your not supporting this site already which brings you news from the Left to the Right (really the same war mongering bollox) then I could REALLY do with some..

Even if it's just £5 or tick the monthly subscription box and throw a few pound my way each month, it will be much appreciated. Read on to find out why.


Any support to keep this site would be appreciated. You could set up a monthly subscription for £2 like some people do or you could pay a one off donation as a gift.
I am not asking you to pay me for other people's articles, this is a clearing house as well as place to put my own views out into the world. I am asking for help to write more articles like my recent false flag gas attack to get WWIII started in Syria, and Trump away from Putin. Hopefully a few missiles won't mean a WikiLeaks release of that infamous video Trump apparently made in a Russian bedroom with Prostitutes. Also please note that this article was written just an hour after the papers came out, and I always come back and update them.

If you want to read JUST my own articles then use the top menu I have written hundreds of articles for this site and I host numerous amounts of material that has seen me the victim of hacks, DOS plus I have been kicked off multiple hosting companies, free blogging sites, and I have even had threats to cease and desist from the US armed forces. Therefore I have to pay for my own server which is NOT cheap. The more people who read these article on this site the more it costs me so some support would be much appreciated.

I have backups of removed reports shown, then taken down after pressure, that show collusion between nations and the media. I have the full redacted 28/29 pages from the 9.11 commission on the site which seems to have been forgotten about as we help Saudi Arabia bomb Yemeni kids hiding in the rubble with white phosphorus, an illegal weaapon. One that the Israeli's even used when they bombed the UN compound in Gaza during Operation Cast Lead. We complain about Syrian troops (US Controlled ISIS) using chemical weapons to kill "beautiful babies". I suppose all those babies we kill in Iraq, Yemen, Somalia and Syria are just not beautiful enough for Trumps beautiful baby ratio. Plus we kill about 100 times as many as ISIS or the Syrian army have managed by a factor of about 1000 to 1.

I also have a backup of the FOX News series that looked into Israeli connections to 9.11. Obviously FOX removed that as soon as AIPAC, ADL and the rest of the Hasbra brigade protested.

I also have a copy of the the original Liberal Democrats Freedom Bill which was quickly and quietly removed from their site once they enacted and replaced with some watered down rubbish instead once they got into power. No change to police tactics, protesting or our unfair extradition treaty with the USA but we did get a stop to being clamped on private land instead of the mny great ideas in the original.

So ANY support to keep this site running would be much appreciated! I don't have much money after leaving my job and it is a choice between shutting the server or selling the domain or paying a lot of money just so I can show this material.

Material like the FSB Bombings that put Putin in power or the Google no 1 spot when you search for protecting yourself from UK Police with "how to give a no comment interview". If you see any adverts that interest you then please visit them as it helps me without you even needing to give me any money. A few clicks per visit is all it takes to help keep the servers running and tag any tweets with alternative news from the mainstream with the #altnews hashtag I created to keep it alive!

However if you don't want to use the very obvious and cost free ways (to you) to help the site and keep me writing for it then please consider making a small donation. Especially if you have a few quid sitting in your PayPal account doing nothing useful. Why not do a monthly subscription for less money instead. Will you really notice £5 a month?

0 Responses

Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.

Some HTML is OK

or, reply to this post via trackback.