{"id":5455,"date":"2013-04-26T00:00:00","date_gmt":"2013-04-26T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/04\/mf_global_holdings_bankruptcy"},"modified":"2022-03-09T16:28:18","modified_gmt":"2022-03-09T22:28:18","slug":"mf-global-holdings-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/mf-global-holdings-bankruptcy\/","title":{"rendered":"MF Global Holdings Bankruptcy Trustee Files Lawsuit Against Ex-CEO Corzine and Other Former Executives"},"content":{"rendered":"\n

According to bankruptcy trustee Louis Freeh, former MF Global Holdings (MFGLQ) CEO Jon Corzine and other former executives did not act in good faith when they were in charge of the company. The ex-FBI director is suing them in bankruptcy court for gross negligence and breach of fiduciary duty. (Corzine is also a former Goldman Sachs (GS) CEO and he previously served as a US Senator and the Governor of New Jersey). Also named as defendants are the firm\u2019s ex-COO Bradley I. Abelow and ex-CFO Henri J. Steenkam. MF Global\u2019s collapse left customers wondering where about $1.6 billion dollars of their funds had gone missing.<\/p>\n

Per Freeh\u2019s lawsuit, after becoming CEO, Corzine and the other executives \u201cdramatically changed\u201d MF Global\u2019s business plan but failed to update certain systems, including poor controls that made it impossible for the company to figure out liquidity levels. Corzine then allegedly made the company place large bets on bonds put out by countries in Europe. Freeh believes that the executives knew the risks involved but ignored them. <\/p>\n

The case comes after Freeh submitted a report about Corzine and other executives. The former FBI director had said he was going to hold off and try resolving the securities claims via mediation, but even with this process still ongoing, Freeh believes that moving ahead with the lawsuit is in creditors\u2019 best interest.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

According to bankruptcy trustee Louis Freeh, former MF Global Holdings (MFGLQ) CEO Jon Corzine and other former executives did not act in good faith when they were in charge of the company. The ex-FBI director is suing them in bankruptcy court for gross negligence and breach of fiduciary duty. (Corzine is also a former Goldman […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[4009],"tags":[],"class_list":["post-5455","post","type-post","status-publish","format-standard","hentry","category-mf-global"],"yoast_head":"\nMF Global Holdings Bankruptcy Trustee Files Lawsuit Against Ex-CEO Corzine and Other Former Executives — Investor Lawyers Blog — April 26, 2013<\/title>\n<meta name=\"description\" content=\"According to bankruptcy trustee Louis Freeh, former MF Global Holdings (MFGLQ) CEO Jon Corzine and other former executives did not act in good faith when — April 26, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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