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CFTC files civil suit in MF Global case

The US Commodity Futures Trading Commission filed a civil lawsuit against Jon Corzine for his role in the collapse of MF Global today.  According to the Wall Street Journal, Corzine and another former executive at the firm have been charged with the unlawful misuse of nearly $1 billion in customer funds.

MF Global’s 2011 collapse led to billions of dollars in missing client funds at the broker dealer and the eighth-largest bankruptcy in US history.

Senate Agriculture Committee Chair Debbie Stabenow praised the move. She issued a statement saying, “The loss of $1.2 billion in customer funds represents an extraordinary breach of trust and devastated thousands of farmers, ranchers and small businesses who rely on the futures market to hedge business risk.”

CFTC also fined MF Global $100 million.