Friday, April 13, 2012

MF Global trustee may sue company employees


The trustee liquidating MF Global's broker-dealer said he may bring civil lawsuits against some of the company's employees in connection with a massive shortfall in customer funds created in the days leading up to its collapse, the good folks at Reuters tell us.

Trustee James Giddens said in a statement late Thursday he may assert claims for breach of fiduciary duty and for violating rules governing the segregation of client funds. Giddens referenced "individuals at" MF Global's parent company and its broker-dealer, but did not name potential targets.

Giddens' spokesman, Kent Jarrell, said the individuals include officers, directors and other employees, but declined to say whether former Chief Executive Jon Corzine was among them.

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