The CFTC announced that it has obtained Consent Orders against Defendants Jon Corzine and Edith O'Brien in connection with their respective roles in MF Global's unlawful use of customer funds totaling nearly one billion dollars. The Orders arise out of the CFTC’s amended Complaint, filed on 12/6/13. 

• CORZINE ORDER: In addition to having to pay a $5 million fine, the former CEO is barred from associating with a Futures Commission Merchant ("FCM") and can never register with the CFTC in any capacity. John Corzine was CEO of MF Global from 9/1/10 through commencement of its liquidation proceedings on 10/31/11, as well as the CEO and Chairman of the Board of Directors of its parent company Holdings.

• O’BRIEN ORDER: In addition to having to pay a $500,000 fine for aiding and abetting MF Global's violations, the former assistant treasurer is barred from associating with an FCM and cannot register with the CFTC in any capacity for a period of 18 months. Edith O’Brien had supervised MF Global’s Treasury Department in Chicago, which handled the cash management of MF Global, and was responsible for directing, approving, and/or causing certain wire transfers and other payments into and out of MF Global’s customer accounts. 

Both Orders find that, during the last week of October 2011, in violation of U.S. commodity laws, MF Global unlawfully used nearly one billion dollars of customer segregated funds to support its own proprietary operations and the operations of its affiliates and to pay broker-dealer securities customers and pay FCM customers for withdrawals of secured customer funds.

Previously, the CFTC ‎obtained Orders against MF Global and its parent company, MF Global Holdings, which required restitution in amounts sufficient to pay all customer claims.