BBC News, 18
November 2013
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Stories
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| MF Global collapsed in the wake of the European sovereign debt crisis |
The US Commodity Futures Trading Commission (CFTC) obtained the order from a federal court, as well as an additional $100m in civil penalties.
About $1.6bn
of client money went missing before the firm filed for bankruptcy protection in
October 2011.
The CFTC is
also still suing the former head of the firm, Jon Corzine.
Mr Corzine,
a Wall Street legend at Goldman Sachs and former New Jersey governor, was charged
by the CFTC with failing to properly manage the company in June, with the
regulator saying at the time that he "did not act in good faith" and
did not diligently supervise the collapsed broker.
Mr Corzine
has denied the allegations.
'Vigorously
prosecuted'
"Division
staff have worked tirelessly to ensure that 100% restitution be awarded to
satisfy customer losses," said Gretchen Lowe, the acting director of the
CFTC's enforcement division.
"The
CFTC will continue to ensure that those who violate US commodity laws and
regulations designed to protect customer funds will be vigorously
prosecuted."
MF Global
collapsed two years ago after making a $6.3bn bet on European sovereign debt,
and customers were left reeling when it emerged that more than $1bn of their
money could not be found.
Much of
that money has since been returned but Mr Corzine, who joined the company in
March 2010 with a plan to transform the firm from a futures broker into a major
investment bank, said at the time that he did not know where the money went.
MF Global's
former assistant treasurer, Edith O'Brien, is also still being investigated by
the CFTC, the regulator said on Monday.
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