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26 June 2013

Corzine faces civil lawsuit following MF Global collapse

The former chief executive of failed commodities brokerage firm MF Global is set for a civil lawsuit brought by US regulators for his alleged involvement in the collapse.

By Julia Duke

MF Global collapsed in October 2011

The Commodity Futures Trading Commission is expected to claim that Jon Corzine’s lack of supervision over his employees resulted in the brokerage’s loss of more than $1 billion in customer funds, reports the Times.
MF Global fell into bankruptcy last  October and allegedly attempted to use customer funds to make up for the deficit.

Success rate

According to the Financial Times, Mr Corzine is likely to be successful if litigation continues because CFTC rarely wins when facing executives of failed financial groups. If the CFTC is successful, however, Mr Corzine could be fined millions of dollars in conjunction with a ban on trading commodities.

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