What is in this article?:
- Failed MF Global executives in bankruptcy court, facing class action suits.
- $1.6 billion of customer funds that firm illegally used to cover bad bets going back to customers.
In the fall of 2011, commodity brokerage MF Global went belly up. The firm’s demise was remarkable because some $1.6 billion of segregated customer funds – much provided by farmers and ranchers – went missing after being illegally accessed as the brokerage brass attempted to ameliorate bad investments.
Close to three years later, MF Global executives -- including Jon Corzine, a former New Jersey senator and governor – are now in bankruptcy court.
How have the firm’s customers and creditors fared?
In late May, Delta Farm Press spoke with John Roe, principal at BTR Trading Group, and co-founder of the Commodity Customer Coalition, a group that has worked to ensure MF Global customers are made whole and needed trading reforms put in place.
Where do things stand with the MFG case? Have customers been made whole?
“The customers are in the process of being made whole. The last objection regarding that was overruled and the trustee has begun the process of issuing the final true-up payments to 100 percent for all FCM (futures commission merchants) customers and all classes.
“So, over the course of the next several months, distribution will be on a rolling basis and folks should see checks in the mail. By the end of the second (business) quarter, I think you’ll see all MFG customers fully recover the assets in their accounts.”