The actions of MF Global CEO Jon Corzine finally may have caught up to him. The former chief of Goldman Sachs (NYSE: GS) may be taken to court by the trustee charged with sorting out the reasons for the financial firm’s Chapter 11. By most accounts, tens of millions of dollars in customer money were used for trading bets. When these did not work out, MF Global essentially became insolvent. A total of $1.6 billion of customer funds disappeared in the process. In his report, trustee James Giddens wrote:
The Trustee believes that claims, including claims for breach of fiduciary duty and negligence, may be asserted against former MF Global CEO Jon Corzine, former MF Global CFO Henri Steenkamp, and former MF Global Assistant Treasurer Edith O’Brien, among others. The Trustee is already consulting with commodities’ customers’ class action counsel about actions against officers and directors and other employees, and the Trustee has also communicated with relevant insurers.
Corzine will know in a few weeks whether he will have to defend himself — with the help of attorneys.