Remember Jon Corzine? He is the former Democrat senator from and governor of New Jersey. He is also the former CEO of MF Global, a commodities trading firm that went bankrupt last fall. After the bankruptcy, it was determined that nearly 2 billion dollars of customers' money was "missing". Corzine testified to Congress that he had no idea where the funds were. He also testified that he had never directed or approved anyone taking the customers' funds to cover MF Global's obligations.
Today it appears that Corzine lied to Congress. That would be perjury. It also appears that Corzine directed that the accounts of customers were to be looted to pay off the debts of MF Global. That too is a possible criminal act. Here is what Bloomberg is reporting:
Jon S. Corzine, MF Global Holding Ltd. (MFGLQ)’s chief executive officer, gave “direct instructions” to transfer $200 million from a customer fund account to meet an overdraft in one of the brokerage’s JPMorgan Chase & Co. (JPM) accounts in London, according to an e-mail sent by a firm executive.
Edith O’Brien, a treasurer for the firm, said in an e-mail sent the afternoon of Oct. 28, three days before the company collapsed, that the transfer of the funds was “Per JC’s direct instructions,” according to a copy of a memo drafted by congressional investigators and obtained by Bloomberg News.
There may be an explanation for all this, but I cannot see what it is other than that Corzine lied under oath. If Corzine cannot explain his prior testimony away, he may soon join Rod Blagojevich in prison.
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