Charges Unlikely in MF Global Collapse

Investigators decide loss was caused by recklessness, not fraud
By Kevin Spak,  Newser Staff
Posted Aug 16, 2012 9:33 AM CDT
Former MF Global Holdings Ltd. Chairman and Chief Executive Officer Jon Corzine is sworn on Capitol Hill, Dec. 15, 2011, prior to testifying before the House Financial Services Committee.   (AP Photo/Susan Walsh)

(Newser) – If you're holding your breath waiting for criminal charges in the MF Global case, you're probably never going to breathe again. Heading into the home stretch of their probe into the collapse, criminal investigators have all but concluded that while the firm may have been reckless, it didn't commit fraud, sources tell the New York Times.

Authorities have requested an interview with Jon Corzine, a strong indication that he won't be charged; sources say that after reviewing thousands of documents, prosecutors haven't been able to pin anything on the ex-governor. Corzine is currently considering starting a new hedge fund to rebuild his image, sources say, though investors may not exactly be eager to sign on. Matt Taibbi quips that its HQ "will be right next to OJ's home for battered women and Jeff Dahmer's Bed & Breakfast." (Read more Jon Corzine stories.)

My Take on This Story
Show results without voting  |