A former trader for the brokerage MF Global (UNKNOWN:MFGLQ.DL) has pleaded guilty to 2008 commodities trading violations that resulted in a loss exceeding $141 million,  the U.S. Attorney's Office for the Northern District of Illinois announced in a news release Tuesday.

The trader, Evan Brent Dooley, 44, of Olive Branch, Miss., was an "associated person" in the company's Memphis branch, according to authorities. He admitted to executing large-scale, unauthorized trades on wheat futures contracts over the Chicago Board of Trade commodities exchange in February 2008.

News of the trading loss resulted in a steep decline in MF Global's share price and triggered an internal crisis at the company. It filed for bankruptcy in October 2011, a collapse that was precipitated by a $6.3 billion bet on European sovereign debt. 

Dooley remains free on bond. He is scheduled to be sentenced in District Court in March. Dooley faces a maximum sentence of 10 years in prison and a $1 million fine, as
well as an agreed order of restitution.


Eric Volkman has no positions in MF Global. The Motley Fool has no positions in MF Global. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.