MF Global Ordered to Make Customers Whole Over Mishandled FundsGregory Mott
MF Global Holdings Ltd. was ordered to pay $1.2 billion in restitution and a $100 million fine over claims that a brokerage unit misused customer funds, the U.S. Commodity Futures Trading Commission said in a statement today.
The bankrupt firm is being ordered to pay the amount needed to ensure customers of MF Global Inc. are repaid in full, the CFTC said in a statement on the order issued yesterday by Federal Judge Victor Marrero of New York’s Southern District.
The CFTC sued the company, its subsidiary and executives over mishandling of customer funds during the last week of October 2011. The agency’s litigation continues against former Chief Executive Officer Jon S. Corzine and Edith O’Brien, a former assistant treasurer of the unit that oversaw the funds.