MF Global downfall rumbles on as CFTC gears up for civil action

 
Michael Bow
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US REGULATORS are prepping a civil lawsuit against former MF Global boss Jon Corzine who oversaw the dramatic bankruptcy of the brokerage in 2011.

The Commodity Futures Trading Commission (CFTC), which regulated MF Global, is poised to file a civil case against the ex-MF boss for allegedly failing to stop misappropriation of customer money. In a move which could prompt years of protracted legal battles, the CFTC is understood to have ruled out allowing Corzine to settle the case, which could lead to hefty fines for Corzine if he loses any case that is brought.

A Corzine spokesman hit back at the CFTC for an “unprecedented and meritless civil enforcement action”.

“If the CFTC brings this enforcement action, Corzine would welcome the opportunity to litigate this matter in an impartial venue,” he told the New York Times, which first reported the story.