US agency sues Corzine over failure of MF Global - 13 WTHR Indianapolis

US agency sues Corzine over failure of MF Global

Updated:
WASHINGTON -

Onetime U.S. senator and governor of New Jersey Jon Corzine is being sued by federal regulators who allege that he was responsible for the misuse of customer money while CEO of MF Global, which collapsed in 2011.

A civil lawsuit filed in Manhattan by the Commodity Futures Trading Commission seeks to restrict Corzine's ability to trade investments and demands he pay unspecified penalties.

The suit charges that MF Global violated U.S. laws in the weeks before it collapsed by using customer funds to support its own trading operations. About $1.2 billion in customer money vanished when the firm collapsed.

The lawsuit says Corzine bore responsibility for the unlawful acts by MF Global because he controlled the firm and its holdings and "either did not act in good faith or knowingly induced these violations."

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