MF Global Ordered to Pay $1.21 Billion Restitution

WASHINGTON (AP) -- MF Global Inc. must pay back $1.21 billion to ensure customers recover their losses sustained when the brokerage firm failed in 2011.

The restitution is being levied following a complaint filed by the U.S. Commodity Futures Trading Commission earlier this year that alleges MF Global unlawfully used customer funds for the firm's needs in its final weeks.

MF Global Holdings, the New York-based parent company, imploded in October of 2011 after making big bets on bonds issued by European countries that later turned sour. When it collapsed, more than $1 billion in customer money was discovered to be missing. It was later discovered that the funds were used to pay for the company's own operations. With $41 billion in assets, it was the eighth-largest corporate bankruptcy in U.S. history.

The commission said Monday that a federal court has approved the consent order for the fine for customer repayment.

MF Global also faces a $100 million civil penalty that must be paid after it has fully paid customers and certain creditors.

MF Global admitted in the consent order that it is liable for some of the allegations pertaining to the acts and omissions of its employees as set forward by the CFTC.

The commission is still involved with litigation against MF Global Holdings Ltd. as well as former company leaders Jon Corzine and Edith O'Brien.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2732907, ~/Articles/ArticleHandler.aspx, 7/24/2014 4:33:10 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement