Jon Corzine inappropriately ordered the removal of $200 million from customer funds while serving as the head of MF Global, according to a memo released Friday by a House Financial Services subcommittee – a finding that appears to contradict the former New Jersey governor’s congressional testimony.
The money contributed to the disappearance of an estimated $1.6 billion in client money.
The memo released Friday details an email by Edith O’Brien, an assistant treasurer at MF Global, saying the transfer last October 28 “per JC’s direct instructions” would cover an overdraft in the London account of JPMorgan Chase. “JC” stood for Corzine.
Just days later, the futures brokerage—stretched to the breaking point by betting on European sovereign debt—filed for bankruptcy.
The email appears to dispute congressional testimony last year by Corzine, also a former Democratic senator who raised at least $500,000 last year for President Barack Obama. In December, Corzine told a congressional panel, “I did not instruct anyone to lend customer funds to anyone.”