Corzine sued by Montana farmers over futures account money

Corzine sued by Montana farmers over futures account money
Montana farmers are suing John Corzine for fraud, saying he oversaw the misappropriation of their commodity trading account funds.
FEB 13, 2012
Jon Corzine, former chief executive officer of collapsed commodity brokerage MF Global Holdings Ltd., was sued for fraud by Montana farmers who claim he oversaw the misappropriation of their commodity trading account funds. The lawsuit filed today by three farmers and a cattle- raising operation in Montana seeks to represent a nationwide group of commodities futures customers whose money went missing amid the $41 billion bankruptcy of MF Global, parent of the futures brokerage that is being liquidated. A trustee is looking for $1.2 billion or more in money missing from commodity customers' accounts. Corzine, the former governor of New Jersey, and other executives at MF Global made “knowingly false statements” to induce the plaintiffs to enter into contracts with the brokerage, according to the complaint filed in federal court in Missoula, Montana. The executives failed to disclose to customers that their money was used to finance MF Global's bad bets on European sovereign debt, the farmers said in the complaint. The lawsuit also names JPMorgan Chase & Co., MF Global's clearing broker and custodian, as a defendant, alleging it failed to detect suspicious activity at the brokerage and aided and abetted in the fraud. Corzine has said he doesn't know where the missing money is and didn't authorize any misuse of customer funds that may have occurred. Corzine is the defendant in at least nine lawsuits before a federal judge in Manhattan that seek compensation for losses from the company's bankruptcy, according to court papers. Mary Sedarat, a JPMorgan spokeswoman, declined to comment on the lawsuit. Steven Goldberg, a spokesman for Corzine, didn't immediately return an e-mail seeking comment about the complaint. --Bloomberg News--

Latest News

Private credit becoming 'big piece' of annuities, T. Rowe exec says
Private credit becoming 'big piece' of annuities, T. Rowe exec says

Goldman Sachs retirement survey finds 83% want guaranteed income, while the annuities providing that income increasingly hold private credit.

Zocks debuts Claude plugin with seven skills for financial advisors
Zocks debuts Claude plugin with seven skills for financial advisors

The AI meeting assistant's Advisor Intelligence plugin turns client conversation data into annual reviews, tax scans and attrition alerts.

Stifel settles massive $30 million complaint involving star broker’s sale of structured products
Stifel settles massive $30 million complaint involving star broker’s sale of structured products

Chuck Roberts and Stifel have been facing scrutiny due to sales of structured products and structured notes.

SEC floats CFP route to accredited investor status, fund rules refresh amid private market push
SEC floats CFP route to accredited investor status, fund rules refresh amid private market push

Among other updates, the proposals would let advisors to regulated funds earn performance fees and allow interval funds to offer monthly repurchases.

The Year Is 2046 and I’m a Financial Advisor 
The Year Is 2046 and I’m a Financial Advisor 

What will financial advice look like 20 years from now? Evan Vladem explores how AI may transform wealth management while reinforcing the enduring value of human guidance, trust, and empathy. 

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains