CFTC: MF Global customers to receive payments
The trustee for MF Global Inc., a registered commission merchant that failed to segregate funds for customers including farmers, will begin making final distribution that will result in full restitution of $1.2 billion in customer losses when the company failed in 2011, the Commodity Futures Trading Commission announced today.
The consent order obtained by the CFTC, MF Global’s regulator, required MF Global to begin making final restitution payments after obtaining permission from the bankruptcy court to remedy any shortfall with funds of the MF Global general estate.
In addition to full restitution, the consent order imposed a $100 million civil monetary penalty on MF Global, to be paid after MF Global has fully paid customers and certain other creditors entitled to priority under bankruptcy law.
“Throughout the division’s investigation and ongoing litigation, ensuring full restitution to customers has been a primary focus,” said Gretchen Lowe, acting director of the CFTC’s Division of Enforcement.
“I am pleased that the terms of the consent order are now being fulfilled and that these final restitution payments will satisfy the remaining shortfall,” she said. “The CFTC will continue to ensure that those who violate U.S. commodity laws and regulations designed to protect customer funds will be held accountable.”
The CFTC’s litigation continues against the remaining defendants: MF Global Holdings Ltd., Jon Corzine, and Edith O’Brien, the agency noted.
–The Hagstrom Report