Class Action Suit against John Corzine over MF Global Debacle Filed
Group of Montana farmers suing on behalf of all 38,000 MFG farmer, rancher and other clients
A class action lawsuit was filed last week against former head of MF Global (MFG) John Corzine by Montana farmers, suing on behalf of all 38,000 MFG farmer, rancher and other clients who had accounts with the now-bankrupt trading company. ABC News reported the suit was filed against Corzine because of his “single-minded obsession” with making MFG a major player on Wall Street.
The suit alleges MFG made a bad investments, including investing in European debt, and that the firm “began siphoning off funds withdrawn from segregated accounts” to pay off its debts. An attorney for the suit said MFG became what some contend was the nation’s largest trading company “through Corzine’s political lobbying and the commingling and looting of customer segregated accounts.”
Federal bankruptcy law precludes suing MFG while it’s under bankruptcy protection, but does not protect the company’s former executives. The suit names Corzine, other MFG executives, PricewaterhouseCoopers and JP Morgan Chase, the bank that held the MFG monies. Other suits filed on behalf of MFG customers have named Corzine and other MFG management team members, ABC reported.
