Restitution Will Cost|MF Global $1.2 Billion

     (CN) – MF Global, the failed brokerage firm run by former New Jersey Gov. Jon Corzine, must pay $1.2 billion in restitution to investors blindsided by its collapse, a federal judge ruled.
     The consent order signed by U.S. District Court Judge Victor Marrero also imposes a $100 million civil penalty for the firm after it pays back its investors and satisfies its debts to creditors.
     Although the order was signed Nov. 8, the U.S. Commodity Futures Trading Commission did not announce the terms of the consent order until Monday.
     Meantime last week, Judge Marrero refused to dismiss any part of a consolidated shareholder complaint against Corzine and 22 other MF Global directors, officers and underwriters.
     MF Global collapsed in October 2011, and then couldn’t account for what it had done with more than $750 million of its customers’ money.
     The CFTC had filed its suit against MF Global Inc., MF Global Holdings Ltd., Corzine as CEO and the assistant treasurer, Edith O’Brien, this past June.
     Regulators said Corzine had run the company in an arrogant manner and placed bad bets that horrified his underlings, particularly on European sovereign debt.
     At that time of the CFTC filing, the firm agreed to settle the complaint and admit to the government’s allegations.
     Earlier this month, a bankruptcy judge cleared MF Global to pay back all the money owed to its U.S. and overseas commodity customers, the CFTC said in a statement.

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