MF Global’s U.S. Trustee Considering Suits Against U.K. Staff - Bloomberg
The bankruptcy trustee of MF Global
Holdings Ltd. (MFGLQ) is seeking to interview former London employees of
the failed broker as it considers lawsuits against the U.K. unit
and its staff.
Louis Freeh, the trustee for MF Global’s parent company in
New York, is seeking to recover at least $233 million that was
transferred into the U.K. in the days before the brokerage’s
collapse, according to papers from a July 20 London court
hearing. Those payments “may give rise to substantial claims”
against the company or employees, Freeh’s lawyers said in the
documents.
Former MF Global Chairman Jon Corzine, and other executives
who oversaw $6.3 billion in trades on European national debt,
may face negligence lawsuits in the U.S. for their role in the
company’s downfall, according to a June report by the separate
trustee for the MF Global Inc. brokerage arm. The trades led to
margin calls and credit downgrades before the firm filed the
eighth-largest U.S. bankruptcy in October.
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