The Commodity Futures Trading Commission today announced that it has filed charges against former Democratic Governor/Senator Jon Corzine for his part in the embezzlement of customer funds at MF Global.
The article says that most of the embezzled funds have been recovered, but that’s not only news to me, I don’t see how it’s possible. We are talking about the misuse and loss of one billion dollars.
The law is such an inconvenient thing: It appears the Obama Justice Department is not going to prosecute Obama fundraiser and former Democratic Governor/Senator Jon Corzine for the embezzlement of customer funds at MF Global.
What Corzine and MF Global did was the equivalent of a bank president digging into his customer’s private bank accounts in order to fund their own private investments. That is called embezzlement. It is a felony. That the Obama Justice Department is going to let Corzine off the hook is more evidence that this administration doesn’t believe in enforcing the law, but in using the power of government for its own ends. Disgraceful.
Jon Corzine stole from his customers. Until Corzine is put on trial in a court of law, no one will be able to get to the truth. He is being protected by the party in charge. The political waters are so virulent that they don’t want to see him tried. The event happened last October. Surely there is enough information available to convene a grand jury and begin indicting people. The public is being played. We are schmucks. [emphasis mine]
The party in charge is the Democrat Party. The man in charge of that party is Barack Obama. The voters should take note.
Now we know: Jon Corzine gave “direct instructions” to illegally transfer customer funds to pay off MF Global’s debt.
In a different world behavior like this was called embezzlement. But Corzine is a Democrat and the go-to guy on economic matters for the Obama administration, which is why he still remains free with no criminal charges against him. Moreover, because he is so closely tied to the Obama administration we all know that any accusations or evidence against him must be racist.
The fix is in: Investigators have decided that it was sloppy bookkeeping rather than criminal activity that caused MF Global to illegally misuse and then lose more than a $1 billion of customer funds.
Regulators and law enforcement officials have spoken to numerous former employees of MF Global since the firm’s demise and continue to review the hundreds of documents before they make their final conclusion. But one employee who hasn’t been interviewed by the criminal investigators is [former Democratic Governor and Senator Jon] Corzine. People close to the probe say they won’t likely depose him unless a criminal probe appears more likely.
How convenient. The man in charge, Corzine, who was also the “go-to” guy for the Obama administration on economic matters, is somehow not questioned.
The NY Times reported today that the investigation into MF Global’s bankrucpty has located most of the missing $1.2 billion of customer money.
Investigators have determined what happened to nearly all of the customer money that disappeared from MF Global around the time of its bankruptcy last Oct. 31, but have not publicly disclosed their progress, fearing that doing so might cripple efforts to recover the cash and pursue potential wrongdoing, people briefed on the investigation said.
While authorities have traced hundreds of millions of dollars to banks, MF Global’s trading partners and even the firm’s securities customers, investigators remain uncertain about whether they can retrieve the money.
As I was reading this article I had the strange feeling that I lived in an alternative universe. At no point did the New York Times bother to mention the name of former Democratic New Jersey Governor Jon Corzine, the economic go-to guy for the Obama administration and the man who was in charge of MF Global when all of this illegal and incompetent activity occurred. For those that want to know a bit more about the story, you might want to go to this New York Post editorial today, which lays out the issues that the New York Times so conveniently wants everyone to forget, and also notes that even now Corzine is out there campaigning and raising funds for Obama’s re-election.
Well, as they say, birds of a feather will flock together.
Investigators now think that MF Global, the company run by former Democratic governor Jon Corzine, Obama adviser and fundraiser, lost $1.2 billion of its customers’ money in “a labyrinth of shady trading and raids.”
Not surprisingly, this article from the liberal New York Times plays the game of “Name that party!”, conveniently forgetting to mention anywhere that Jon Corzine and all his associates just happen to big-time Democratic Party players. To remind them, and everyone else, here’s a little video illustrating how closely linked the Democrats and Jon Corzine are:
The failure of broker MF Global is a unique event in the annals of American corporate history: To my knowledge, it’s the first time a CEO singlehandedly bankrupted his firm through actions that the board of directors was not only knowledgeable of, but had indeed expressly sanctioned. “That takes some talent!” quipped Roderick Hills, a former chairman of the SEC.
The article is long, detailed, and thorough. It describes a deep corruption that should chill the spine of anyone who has money in the investment world.
I must note that I do not advocate more regulations to eliminate this corruption. Such regulations never work. Take for example this quote from the article, describing the accounting systems that are required by law to prevent a client’s funds from being misused:
As noted above, it’s a major part of the CEO’s job to put the proper systems in place. In fact, regulations implemented through Sarbanes-Oxley — a bill that Corzine co-wrote while he was a senator — require that the CEO and CFO sign off on the effectiveness of the controls over financial reporting. … If those proper “controls and procedures” were in place, a breach of segregated client funds should have set off loud, blaring, obnoxious alarms that would have alerted management to that breach.
In the case of Jon Corzine and MF Global, those controls were obviously not in place, and thus the Sarbanes-Oxley bill wasn’t worth the paper that Corzine used to write the bill.
Rather than more regulations, what works is very simple and can be summed by two words: “Buyer beware.” Investors (as well as voters considering the political ambitions of Corzine and his friends) have to be more skeptical of whom they put their trust in. You have to protect yourself. You can’t ask others to do it for you.
Testimony today at a Senate hearing about the MF Global scandal revealed that Jon Corzine, the former Democratic New Jersey governor and a fundraiser for President Obama, was aware of the theft of customer funds, contrary to his own testimony before Congress. More here.