Restoring Confidence, one (CFTC) Lawsuit at a Time

The SCOTUS ruling isn’t the only legal news gaining national attention today. This morning, the New York Times broke the highly anticipated story that Jon Corzine will finally get his day in court.  Almost two years after the initial investigation into MF Global misappropriating $1 Billion of customers’ money – and a whole lot of yelling by our friend and customer advocate James Koutoulas , the CTFC is announcing its plans to file a civil lawsuit against the former MF Global CEO.

Here’s the juicy part: the CTFC is planning of filing the civil suit without an opportunity to settle.

Even though a MF Global trustee alleges the collapse of the firm was entirely Corzine’s fault, he might not face criminal charges. The New York Times explains why.

“After nearly two years of stitching together evidence, criminal investigators have concluded that porous risk controls at the firm, rather than fraud, allowed the customer money to disappear, according to the law enforcement officials with knowledge of the case.”

Even though there is evidence to believe that Corzine made a direct choice to use the customer money to make up for loses, Mr. Corzine’s spokesperson says Corzine was unaware that customer funds were used.

“During the difficult final week, Mr. Corzine was never informed, nor was he ever given reason to believe, that customer funds were at risk or were being used improperly. Justice would not be served if Mr. Corzine were to be blamed for alleged mistakes that were made without his knowledge.”

As for regulating Wall Street, this would be a new frontier for government regulators, as no employees from the Leman Brothers 2008 collapse faced any civil or criminal charges. However, we are stilling waiting to hear if any other executives from MF Global will face any charges.

If found liable, Corzine faces millions in fines, and a ban from trading commodities. There’s no word yet on how many charges he will be facing, so this court battle could last for decades. But with Corzine’s lawsuit coming weeks after the CFTC declared it’s suing the U.S. Bank over the PFG Fraud, there definitely seems to be a shift in the attitude of the commodities market regulator.

And for many in the industry – the feeling is one of ‘about time’. You see, it is hard to restore confidence in the system if nobody is held accountable.  If it looks and feels like business as usual – real worries about the next Corzine or next US Bank – slosh around in people’s heads. If real people are fighting day in and day out for customer rights and fighting to hold those who infringe upon them accountable – a confidence in those people and the industry they are building/protecting starts to re-emerge.

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The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.