Business

MF Global CEO & Top Obama Bundler Will Most Likely Avoid Criminal Charges, Bipartisan Shock Ensues

MF Global CEO & Top Obama Bundler Will Most Likely Avoid Criminal Charges, Bipartisan Shock Ensues

(File)

A criminal investigation into the demise of MF Global and the mysterious disappearance of $1.2 billion in client funds has concluded that “chaos and porous risk controls,” rather than fraud, is to blame — so criminal charges probably won‘t be brought against the firm’s former CEO and key Obama fundraising bundler Jon Corzine, the New York Times reports.

The reaction to this news has been both angry and bipartisan.

“At this point, it is clear that people like Corzine, and Lloyd Blankfein could put on masks and start sticking up fruit stands all over lower Manhattan, and get away with it because of  ‘the difficulty in prosecuting crimes like these,’” writes Charles P. Pierce on the Esquire blog.

“It always seemed … inevitable that there was never a chance that former MF Global CEO Jon Corzine would be criminally charged over his failed stewardship of the firm,” Jim Kim writes for Fierce Finance.

“Because in the Banana republic of the crave, no bundles can ever go to jail, no matter how heinous the crime,” writers at Zero Hedge grumble.

As reported previously on TheBlaze, disaster struck when MF Global executives, chief among them Corzine, made terribly risky bets on European investments. When these bets didn’t pay off, sources say money was shifted from customer accounts to cover the losses.

Eventually, the entire system broke down and, when everything came to a screeching halt, an estimated $1.2 billion had gone missing. When asked by a congressional panel where the money went, all Corzine could do was shrug and say, “I don’t know.”

And the investigating team can’t find anything?

“How could prosecutors drop a case where over one billion dollars in client money has gone missing , and where a CEO is throwing his hands up and saying he has no clue?” writes Halah Touryalai for Forbes.

“It’s possible that Corzine had no idea that his own firm had started raiding customer accounts to cover Corzine’s own bad bets on EU debt … but it stretches the imagination to believe it,” writes Hot Air’s Ed Morrissey.

Over at The Atlantic, they were similarly skeptical and disturbed by the news:

Of course, if the company‘s bankruptcy is the result of incompetence rather than theft that won’t make those who were burned by it feel any better. Nor will it help ease the fears of anti-Wall Street types who already believe the financial industry is a wasteland of greed and corruption.

Meanwhile, the more “outspoken” critics of the MF Global disaster were less muted in their response to today’s news.

“Well it looks like another Wall Street firm that put customers in jeopardy will escape criminal prosecution,” the Huffington Post fumed.

“Crimes were unequivocally committed and I will do whatever I can to continue to do the government’s job for it and help see justice done,” James Catulis, a lawyer representing several MF Global clients whose money has gone missing, told CNBC.

“Jon Corzine is an ex-senator, ex-governor — well-connected — I walk away thinking, ‘If you’re one of those elites, you’re above the law,’” said CNBC’s Rick Santelli.

Watch Santelli discuss his thoughts on the latest chapter in the MF Global debacle [via CNBC]:

But here is the kicker in all of this: In what the Times calls an effort to “rebuild his image” and reconnect with “his passion for trading,” Corzine is seriously considering starting another hedge fund. Yes, the man who sat at the helm of MF Global when billions of dollars in customer funds went missing is looking to get back into a line of business where people are supposed to trust him with their money.

In response to this bit of news, Rolling Stone’s Matt Taibbi joked that the location for Corzine’s new HQ would probably be “right next to OJ‘s home for battered women and Jeff Dahmer’s Bed & Breakfast.”

Follow Becket Adams (@BecketAdams) on Twitter

Front page photo source: the AP.

Comments (101)

1 2 3
  • mash4077
    Posted on August 16, 2012 at 7:38pm

    he ripped-off hundreds, if not thousands of people.he is no different than bernie madoff. the only difference is madoff is in jail where he should be and corzine laughs all the way to the bank. yep, change we’ve been deceived in. keep voting democrat american sheeple, keep voting democrat!

    Report Post » mash4077  
    • Detroit paperboy
      Posted on August 16, 2012 at 7:43pm

      Yeahh, cuz stealing all your customers money to cover your losses isn’t illegal…..if your one of them…
      This should outrage everybody no matter your political affiliation ………but it won’t.

      Report Post »  
    • Mojoron
      Posted on August 16, 2012 at 8:29pm

      Gee, why am I not surprised?

      Report Post » Mojoron  
    • dmerwin
      Posted on August 16, 2012 at 8:43pm

      Well imagine that! Former Democrat governor, former Democrat Senator, “loses” a whole bunch of investor funds and gets a pass. Thanks, Dodd-Frank! Very effective reform!

      Report Post » dmerwin  
    • Gold Coin & Economic News
      Posted on August 16, 2012 at 8:54pm

      Just one more reason to vote for Obama:
      http://www.youtube.com/watch?v=wTRqjpK6ScQ

      Report Post » Gold Coin & Economic News  
    • HKS
      Posted on August 16, 2012 at 8:56pm

      More of Obama’s hope and change, steel all you can and Obama covers for you. Maybe that’s why he is such good buds with Van Jones.

      Report Post » HKS  
    • AZindependent
      Posted on August 17, 2012 at 12:29am

      This type of theft now has the blessings of the courts. You are officially now in a world without rule of law. Next up your bank accounts, 401Ks, etc….

      As Ann Barnhardt says (and everyone should listen to), “if you can‘t stand in front of it with an AR15 to defend it you don’t own it.” No electronic brokerage and bank accounts, no paper gold “investments”, no government IOUs, you shouldn’t even hold a bunch of paper Federal Reserve Notes. It’s time to invest in real, defensible assets. The Banksters are now officially above the law.

      Report Post »  
    • docgreen
      Posted on August 17, 2012 at 2:59am

      holder and obama strike again! If I were Romney and Ryan, id be using this every day! And I’d also use,

      http://www.theblaze.com/stories/is-gm-really-going-to-go-bankrupt-again/

      And I’d tell everyone what Baine would do after GM files bankruptcy! To make GM profitable again!

      Report Post »  
    • starman70
      Posted on August 17, 2012 at 8:18am

      But did you notice the headline which said, “Top Obama Bundler”? The answer is plain and simple – - – if you are one of the gang (Modeled after the Chicagoland gangs of the 20s and 30s) and support the administration – - – no problem.

      Al Capone would have been proud of Corzine.

      Report Post »  
    • straitshot
      Posted on August 17, 2012 at 10:49am

      These guys have the system so well rigged that they can act with complete immunity. They know it, the administration protects them and WE get to pay for it. Go Team!

      Report Post »  
    • justlyso
      Posted on August 17, 2012 at 7:42pm

      Did I miss the country of origin? Corzine is a princeling and this is communist china. Forget justice; all we can hope is he chokes on a chicken bone.

      Report Post »  
    • Walkabout
      Posted on August 18, 2012 at 12:23am

      No one is going to jail. There is a 5 year stature of limitations. The Obama Justice department has brought 0 prosecutions. They will all get away with it.

      Stupid OWS which was set up the left does not even know that Obama is not proswcuting the banksters.

      OWS are such dupes.

      Report Post »  
  • pissantno.10
    Posted on August 16, 2012 at 7:32pm

    well we just need to start putting up bill boards of mussaline ? when the italians retired his family in ww-2 p- on me hahaha

    Report Post »  
  • WithOutGodWePerishAsARepublic
    Posted on August 16, 2012 at 7:31pm

    So is this guy living in a cardborad box now ??? Hey BO…what you got to say about this ? Oh-Yeah -I know what he would say ” The guy is innocent-he said he does not know where the money is … that makes him innocent ” …. I bet I know where the money is …SEIU or ACORN…or Soros is holding it for him… ? By the way did not someone related to corzine buy a bunch of gold and silver ???

    Report Post »  
  • progressiveslayer
    Posted on August 16, 2012 at 7:28pm

    Corzine didn’t lose that 1.2 billion somebody else did. This story is no surprise,the slimy weasel Corzine getting away with fraud on a massive scale,just look at his friend Barry he‘s a fraud and he’s wasted trillions of our dollars.

    Report Post » progressiveslayer  
    • justangry
      Posted on August 16, 2012 at 9:01pm

      Of course a desperate person making a mistake by writing a bad check would be in prison in a heartbeat.

      Report Post » justangry  
    • docgreen
      Posted on August 17, 2012 at 3:24am

      I think its called Kiting, Two accounts! Write checks on one, transfer the money into other, then write checks on that one! Banks watch for that and get printouts of Credits and Debits thats made out for the same amounts! But obama and his slithery friends know how to get around all this! And here’s one more of those top 1 or 2 percent of the Wealthiest! Yep, it won‘t be long before he’ll tell, the middle class needs to start paying more taxes to pay for everything! LOL, how stupid can people be! But I guess when you want everything handed to you, you cheat all the systems, you sell your drugs on the street corner, maybe people should worker harder to support you! What a F-ing Joke! Its not bad enough your a drain on everyone, but then you create other drains by selling Drugs! Your Killing US all! 1 street corner Drug Dealer 200 to 300 Users! And we wonder why insurance isn’t affordable? Thats one dealer! Theirs millions of Dealers out their! When Romney steps into the Ovama Office, the first thing he does Get rid of obamadeathcare, 2nd its mandatory all people on wellfare have to take Drug tests! 1st positive 2 months withour aid, 2nd positive 6 months, 3rd positive No more; and no health coverage!

      Report Post »  
  • Tri-ox
    Posted on August 16, 2012 at 7:14pm

    It‘s all Bush’s fault – or something.

    Report Post » Tri-ox  
  • pwatkins
    Posted on August 16, 2012 at 7:14pm

    Not saying I believe any of this but it is something to think about. There are may articles on the web like this with different theorys. Interesting to say the least.
    http://thedisclosureproject-steelmagnolia.blogspot.com/2012/07/james-holmes.html

    Report Post »  
    • momrules
      Posted on August 16, 2012 at 7:44pm

      I’m like you. I don’t know if this is true or not but I do know the media dropped all coverage of Holmes like a hot potato very quickly. I do believe the eye witness that said he saw someone take a call and then go open the emergency exit door.

      Report Post »  
  • .45CALIBERGUIDO
    Posted on August 16, 2012 at 7:14pm

    what about the other liberal criminals?
    “book ‘em Dano”

    Report Post » .45CALIBERGUIDO  
  • BetterInformed
    Posted on August 16, 2012 at 7:10pm

    You would be better off letting Evil Knievel park your car than letting Corzine invest a dollar.

    Report Post »  
    • GeorgieJo
      Posted on August 16, 2012 at 8:46pm

      Nancy Peelooooski is worth 44 million. Maybe she can loan some money to CON CORZINE.
      OMG NOV 2012

      Report Post »  
    • Mil Mom
      Posted on August 17, 2012 at 8:45pm

      @BetterInformed
      Posted on August 16, 2012 at 7:10pm

      You would be better off letting Evil Knievel park your car than letting Corzine invest a dollar
      ***
      How about letting jerry sandusky off for community service to coach youth football?

      Report Post » Mil Mom  
  • lexington_green
    Posted on August 16, 2012 at 7:10pm

    change you can believe in. and obie is still out there trying to paint romney as a felon. i hate hypocrites and the scale of the president’s hypocrisy is bordering on the narcissistically insane.

    Report Post » lexington_green  
    • Mil Mom
      Posted on August 17, 2012 at 8:51pm

      @lexington_green
      Posted on August 16, 2012 at 7:10pm

      change you can believe in. and obie is still out there trying to paint romney as a felon. i hate hypocrites and the scale of the president’s hypocrisy is bordering on the narcissistically insane
      ***
      Foolish cabal!!! They think they succeeded into flipping the world upside down and now down is the new up! Doesn’t matter what they see, their sychophants in the media will tell them what they want to hear! —-Beware if obama loses, Remember the stories of his conspiring with cousin odinga of S African nation on his senate computer about how to win HIS election—AND WHAT HAPPENED AFTER—-SURE HOPE HE’S NOT TAKING ADVICE FROM ODINGA!!!

      Report Post » Mil Mom  
  • Snowleopard {gallery of cat folks}
    Posted on August 16, 2012 at 6:58pm

    What else could be expected of those who are cronies of the administration; this will not come open until we have a new POTUS in office who can initiate independant prosecutors to investigate.

    Report Post » Snowleopard {gallery of cat folks}  
    • CatB
      Posted on August 16, 2012 at 7:06pm

      Let’s hope that they do .. but these things tend to be overshadowed by the NEXT FRAUD or criminal activities of this REGIME. I would love to see all these criminals behind bars!

      Report Post »  
  • bikerdogred1
    Posted on August 16, 2012 at 6:52pm

    The democrats at their best,New Jersey justice spreads to the feds,1.6 Billion,people think about this.

    Report Post »  
  • Carol1955
    Posted on August 16, 2012 at 6:45pm

    Most people never understood this was out and out theft. Many farmers and ranchers used MF Global to position the sale of their crops. This was not speculation, this money was claimed to be secure funds not “investment funds”, totally hands off. They stole it. We’ve gotten some back but they still owe much more to farmers and ranchers across the country. Corzine should be in prision but our department of justice is too busy protecting people from voter ids than prosecuting one of the biggest financial crimes in history.

    Report Post »  
  • 65Mustang
    Posted on August 16, 2012 at 6:41pm

    How can Holder or anyone connected to the Obama administration bring charges against Corzine when they will all share the money…inside job people.

    Report Post »  
  • RJJinGadsden
    Posted on August 16, 2012 at 6:40pm

    It’s good for Corzine to have friends in high places. His Highness 0bama has already come to the rescue. Now if Soros and Buffett kick in a half billion each, his ass will be in the clear.
    http://www.youtube.com/watch?v=yOFHk9KF7pk

    Report Post » RJJinGadsden  
  • MCDAVE
    Posted on August 16, 2012 at 6:36pm

    Of coarse they will not go to jail my guess is they are Obama campaign contributors …If we start putting Banker thieves and politicians in jail,there will be no one left to run our government or the banks,,,,,Wishful thinking.

    Report Post »  
  • perry1980
    Posted on August 16, 2012 at 6:33pm

    The most crooked administration in the history of America

    Report Post »  
  • turkey13
    Posted on August 16, 2012 at 6:32pm

    The real problem popped up when Corzine lost his election. Thats were the money disappered and he was so shocked when he got beat. If he had won he could have wheeled and dealed and paid it back in a month or two. This is why you have nothing but carear politicians in DC. Congress is still playing the stock market – with their money or yours. They know how the market is going to react when they vote on legislation.

    Report Post »  
  • MDECKER
    Posted on August 16, 2012 at 6:30pm

    So, if I rob a bank, hide the money in Barack’s closet, get arrested and tell the cops I don’t remember where I put the money, I get un-arrested? Hmmm! Corzine’s least of problems may come from the authorities, he has some investors that may not cut him as much slack. Have a nice day Jon.

    Report Post »  
  • watersRpeople
    Posted on August 16, 2012 at 6:30pm

    People who love [money] the most (and they love money a lot) feel God’s hell fire the most when the gold in the mountains turns to dust.

    Report Post »  
    • pissantno.10
      Posted on August 16, 2012 at 7:24pm

      burn another one, your about there just remeber obama loves you and some day he will share the loot with you

      Report Post »  
  • OneTermPresident
    Posted on August 16, 2012 at 6:27pm

    Not a whole lot of difference from the way Obama restructured Solyndra‘s loan just before they went belly up to make sure his campaign kickback bundlers got their money out before the taxpayers would ever see any of they’re money back… and they never will see any back even though it was the taxpayers that funded it from cradle to bankruptcy.

    Report Post » OneTermPresident  
  • watersRpeople
    Posted on August 16, 2012 at 6:27pm

    Look at it this way. God is the ultimate dealer of justice, and those clowns have buried gold in the mountains that is already valueless, but they don’t know it yet.

    Report Post »  
  • anthonyebaker
    Posted on August 16, 2012 at 6:24pm

    Last Friday we got the news that the DOJ would not investigate Goldman Sacs for the 2008 sub prime mortgage securities fiasco leading to TARP and now this Corzine / MF Global news. Folks, a society holds together by the image of our justice symbol, LADY JUSTICE BLINDFOLDED HOLDING BALANCED SCALES! People can talk about red team / blue team all day but what holds this country together is the “faith and confidence” people have in the “SYSTEM”! And this system is BROKEN! When any one man rises “ABOVE THE LAW”, the whole system is broken and will crumble. I don’t know if it will be guillotines in the streets or pitch forks and torches but at some point “WE THE PEOPLE” are not going to continue to remain silent. Consider this a warning from the masses.

    Report Post » anthonyebaker  
    • barber2
      Posted on August 16, 2012 at 6:49pm

      Totally agree. The Obama Administration is the most criminally Teflon administration in our history . Why ? Primarily because the Lefty Media controls the propaganda and the facts . The Fast and Furious debacle. The leaks of national security / Stuxnet info to their media friends . All of the Franklin Raines shenanigans . Chris Dowd. Barney Frank. The Affordable Housing Acts. Blago. Offering jobs to politicians to stay out of various races. Obama’s hidden records. And so much more…

      Report Post »  
    • RJJinGadsden
      Posted on August 16, 2012 at 7:22pm

      BARBER2, that should be 0bama is the criminal and the media is his Teflon.

      Report Post » RJJinGadsden  
  • barber2
    Posted on August 16, 2012 at 6:15pm

    Sounds like a case of Chicago politics happening in New York. No evidence ? Like the Franklin Raines mess. No charges. Interesting that a big Democrat and an Obama supporter escapes scrutiny . Find it strange that Blago was prosecuted. Did he know too much ? Then there’s the mysterious Jessie Jackson “illness” situation. Then there is the Obama hidden school records. Then there is the Harry Reid getting away with smearing Romney in the Senate. Then there was the OWS groups occupying Democrat cities. Democrats. Democrats. Democrats. Nobama 2012 No Democrats 2012

    Report Post »  
    • commonsenseguy
      Posted on August 16, 2012 at 6:27pm

      lairs and thieves go hand to hand,the democrats will do every thing they can to keep power and control because if the lose this election,you can bet there will be a lot of them being charged with treason,or i hope they will, but as you put it “‘ no evidence “” it is in plain site but yet so far away, the democrats are taking this great country straight down the communist road that we have fought for years to keep out and yet the just opened all the doors and said come in, god i pray we can get rid of all of them before it is to late.

      Report Post »  
  • commonsenseguy
    Posted on August 16, 2012 at 6:10pm

    1.2 billion wow,i wonder how much of that is being funneled back into obamas campaign war chest,and how much is being stuffed into the pockets of the democrats who helped hide the money.they all should be arrested on theft charges and tried in public court, this administration has done a lot of this and we will not know the extent of it until after obama is out of office,then we will learn the real truth but by then he and his commie thieving buddies will be long gone or they will have executive privilege and will never be charged, wow 1.2 billion and counting.

    Report Post »  
    • BoyScout_Mom
      Posted on August 16, 2012 at 7:36pm

      Franklin Raines, Chairman and Chief Executive Officer at Fannie Mae. Raines was forced to retire from his position with Fannie Mae when auditing discovered severe irregularities in Fannie Mae’s accounting activities. Raines left with a “golden parachute valued at $240 Million in benefits. The Government filed suit against Raines when the depth of the accounting scandal became clear.
      Tim Howard – Chief Financial Officer of Fannie Mae. Howard “was a strong internal proponent of using accounting strategies that would ensure a ”stable pattern of earnings” at Fannie. Investigations by federal regulators and the company’s board of directors since concluded that management did manipulate 1998 earnings to trigger bonuses. Raines and Howard resigned under pressure in late 2004. Howard’s Golden Parachute was estimated at $20 Million!
      Jim Johnson – A former executive at Lehman Brothers and who was later forced from his position as Fannie Mae CEO. Investigators found that Fannie Mae had hidden a substantial amount of Johnson’s 1998 compensation from the public, reporting that it was between $6 million and $7 million when it fact it was $21 million.” Johnson is currently under investigation for taking illegal loans from Countrywide while serving as CEO of Fannie Mae. Johnson’s Golden Parachute was estimated at $28 Million. WHERE ARE THEY NOW? Franklin Raines works for the Obama Campaign as his Chief Economic Advisor. Tim Howard is a Chief Economic Advisor. Jim Johnson, Seni

      Report Post » BoyScout_Mom  
  • tothepoint
    Posted on August 16, 2012 at 6:09pm

    Only a fool would have expected this administration to bring criminal charges against their own.
    Remember the New Black Panther Party getting off thanks to Eric Holder?
    Remember the Fast and Furious gunrunning and murders and Eric Holder and Obama refusing to cooperate?
    There will be more of such corruption if Obama is re-elected.

    Report Post »  
    • sWampy
      Posted on August 16, 2012 at 6:22pm

      Nobody expected it, you still report it, hoping that if moron liberals hear the truth this administration is corrupt for the millionth time, they will finally start to believe it.

      Report Post »  
    • BeeDee
      Posted on August 16, 2012 at 6:24pm

      Oh come on now, this is the hope and change that nObama promised. He just brought the Chicago method of government to D.C. “Like a kid in a candy store…”

      Report Post »  
    • anthonyebaker
      Posted on August 16, 2012 at 6:28pm

      Nothing will change as long as “WE THE PEOPLE” continue to put up with it. Read “Atlas Shrugged”; the COLLUSION between corrupt government and corrupt corporations at this point of the break down was foretold us some 65 years ago by a lil ole Russian lady…. Amazing isn’t it?

      Report Post » anthonyebaker  
    • Darmok and Jalad at Tanagra
      Posted on August 16, 2012 at 6:35pm

      No one expected this, just as no one expects…the Spanish Inquisition……

      http://www.youtube.com/watch?v=CSe38dzJYkY

      They tried everything to get Corazine to talk, they even used the comfy chair and puffy pillow. He just wouldn’t break.

      Report Post » Darmok and Jalad at Tanagra  
    • Al J Zira
      Posted on August 17, 2012 at 10:24am

      @Darmok and Jalad at Tanagra: LOL! But did they threaten to tickle him with a feather?

      Report Post » Al J Zira  
    • Mil Mom
      Posted on August 17, 2012 at 8:59pm

      @Al J Zira
      Posted on August 17, 2012 at 10:24am

      @Darmok and Jalad at Tanagra: LOL! But did they threaten to tickle him with a feather?
      ***
      No, they threatened to let michelle cook for him out of her white house garden! Who knew he loves arugula?

      Report Post » Mil Mom  
    • Walkabout
      Posted on August 18, 2012 at 12:28am

      Any financial crime that happened in 2007 has to have charge brought in 2012 of the stature of limitations passes.

      Obama has brought no charges. Obama is giving the banksters a pass.

      Report Post »  
1 2 3

Sign In To Post Comments! Sign In

Sign Up For Our Newsletter!

Glenn Beck Radio

Listen to Glenn Beck 24/7 Listen Now
Restoring Love