CFTC: Court orders MF Global to pay all restitution and penalty
November 18, 2013 | 04:00 PM
The Commodity Futures Trading Commission announced today that it had obtained a federal court consent order against MF Global Inc. requiring it to pay $1.212 billion in restitution to ensure customers recover their losses sustained when the company failed in October 2011.
The CFTC also noted that Judge Victor Marrero of the U.S. District Court for the Southern District of New York imposed a $100 million civil penalty, to be paid after MF Global has fully paid customers and certain other creditors entitled to priority under bankruptcy law.
The trustee for MF Global obtained permission from the bankruptcy court to pay restitution in full to customers to remedy any shortfall with funds of the company’s general estate, the CFTC said.
The CFTC’s litigation continues against the remaining defendants: MF Global Holdings Ltd., Jon S. Corzine, and Edith O’Brien, the agency said.
“Division staff have worked tirelessly to ensure that 100 percent restitution be awarded to satisfy customer losses,” said Gretchen Lowe, acting director of the CFTC’s Division of Enforcement. “The CFTC will continue to ensure that those who violate U.S. commodity laws and regulations designed to protect customer funds will be vigorously prosecuted.”
The CFTC’s complaint charged MF Global, a registered futures commission merchant with violating provisions of the Commodity Exchange Act and CFTC regulations intended to protect customer funds and requiring diligent supervision by registrants.
Farmers in several states were among those who funds were misused.
The CFTC also noted that Judge Victor Marrero of the U.S. District Court for the Southern District of New York imposed a $100 million civil penalty, to be paid after MF Global has fully paid customers and certain other creditors entitled to priority under bankruptcy law.
The trustee for MF Global obtained permission from the bankruptcy court to pay restitution in full to customers to remedy any shortfall with funds of the company’s general estate, the CFTC said.
The CFTC’s litigation continues against the remaining defendants: MF Global Holdings Ltd., Jon S. Corzine, and Edith O’Brien, the agency said.
“Division staff have worked tirelessly to ensure that 100 percent restitution be awarded to satisfy customer losses,” said Gretchen Lowe, acting director of the CFTC’s Division of Enforcement. “The CFTC will continue to ensure that those who violate U.S. commodity laws and regulations designed to protect customer funds will be vigorously prosecuted.”
The CFTC’s complaint charged MF Global, a registered futures commission merchant with violating provisions of the Commodity Exchange Act and CFTC regulations intended to protect customer funds and requiring diligent supervision by registrants.
Farmers in several states were among those who funds were misused.
