Former New Jersey Democrat U.S. Senator and former Democrat New Jersey Governor Jon Corzine, CEO of MF Global Holdings Ltd (commodity brokers) has finally been charged civilly in the case where thousands of investors lost billions of dollars. The charges come from the Commodities Futures Trading Commission (CFTC). Since the bankruptcy of MF Global, Corzine has continued to bundle/fundraise for Barack Obama – some $872,232 at this time ($70,000 of which Obama returned).
CFTC enforcement head David Meister believes Corzine, who also served as CEO of Goldman Sachs and as governor of New Jersey, is guilty of actively using customer money for bogus deals. It’s alleged that Corzine knew about the company’s low cash reserves but continued spending in large amounts. O’Brien allegedly helped Corzine in these endeavors.
“Mr. Corzine is charged with being more than a passive actor in the downfall of MF Global,” Meister told Reuters on Thursday. “He lacked good faith and … violated his supervision obligations.”
“Our investigation also recovered an audio recording of [O’Brien] saying to a colleague that it could be ‘game over’ from a regulatory perspective if the customer funds weren’t returned,” Meister continued.
Despite the CFTC’s claim that it has solid proof of Corzine’s involvement in the unlawful spending of customer money, Corzine’s lawyers continue to maintain his innocence. Source: International Business Times
Is Corzine going to jail?
Corzine is the real Gordon Gekko of the business world—but he’s a Democrat who has raised almost $900,000 for Obama. And where is Occupy Wall Street? Not following Corzine around as he enjoys another summer in the Hamptons, but railing against the injustices of Saks 5th Avenue. One would hope that this time their rallying cry might be, “This is what hypocrisy looks like!” Source: USNews, Nancy Pfotenhauer
Congressman Michael Grimm (R-NY) is asking the DOJ that Corzine be charged with perjury. Not likely to happen as Corzine was once Attorney General Eric Holder’s employer, along with other current DOJ employees. MF Global’s Controller is Eric Holder’s best friend, attorney Reid Weingarten.
But the more notable bit of news is what won’t happen to him: namely, criminal charges. DealBook’s law enforcement sources tell it that “after nearly two years of stitching together evidence, criminal investigators have concluded that porous risk controls at the firm, rather than fraud, allowed the customer money to disappear,” and have essentially labeled Corzine a bad manager who ran a trading shop without even the most elementary safeguards, rather than a crook. Source: New York Mag
Of course, courtesy of his special rank in the Obama administration, Corzine will never go to jail: after all justice in the crony states of America is only for the little people – those who don’t bundle millions for the president, and those who don’t run Too Big To Prosecute banks, or both at the same time, get a get out of jail card (literally).
Corzine testified at Congress, under oath, and said “I simply do not know where the money is or why the accounts haven’t been reconciled,” and he also stated that he didn’t know how the operational procedures of MF Global. Apparently, Corzine was just there to look pretty.
What the regulatory body will do now, assuming it’s charges hold, should include forbidding Corzine to ever touch a single dollar of investment monies belonging to others, but then if investors want to entrust this self-enriching pirate with their futures, this is still America. Keep those vacations in the Hamptons and St. Barts on the calendar. Cartoon courtesy of the brilliant, two-time Pulitzer winner, Michael Ramirez