An MF Global Holdings Ltd. customer filed a proposed class-action lawsuit against the bankrupt firm and its former head, Jon Corzine.
Davide Accomazzo, managing director of Cervino Capital Management LLC, a Topanga, California-based commodity trading adviser, claimed in the suit filed in federal court in Manhattan that his money and other assets belonging to his clients were lost after MF Global commingled them with its own funds.
Accomazzo alleged in the proposed class-action, or group, lawsuit that MF Global perpetrated a fraud and argued it’s a “bedrock principle” that futures commission merchants such as MF Global weren’t allowed to mix funds held in customer accounts with their own funds under any circumstances. He said the Chicago Mercantile Exchange also prohibits such practices.
Corzine and other officers of the futures brokerage operator, including Bradley Abelow, president and chief operating officer, and Henri Steenkamp, the company’s chief financial officer, violated the Commodity Exchange Act and prohibitions against commingling clients’ money.
Cervino’s clients “have lost money and other assets deposited at MF Global,” Accomazzo said in the complaint.
“MF Global improperly diverted customers’ cash for its own use in the days before its bankruptcy, an act that regulators believe may help explain why $600 million of customer funds remains missing,” Accomazzo wrote in his complaint.
MF Global filed for bankruptcy on Oct. 31.
This lawsuit is one of several that have been previously filed in federal court in New York against MF Global, Corzine and company officials.
Maria Gemskie, a spokeswoman for MF Global, didn’t immediately return a voice-mail message left at her office seeking comment about the lawsuit against current and former MF officials.
The case is Accomazzo v. Corzine, 11-CV-8467, U.S. District Court, Southern District of New York (Manhattan).