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Re: Farmers Sue Jon Corzine Over Missing Millions *LINK*

Its a real mess. I have to think there will be even more based on the article at the link I have included. They are talking about potential lawsuites against a number of 3rd parties.

Right now Louis Freeh (former FBI director) has been appointed as the Trustee of MF Global (the parent company). His main responsibility is to get money to creditors such as bond holders and other investors of MF Global. He is saying that on certain claims the creditors should be put ahead of the MF Global clients/customers who's money was stolen. I belive Freeh is also heavely involved in the investigations going on at Penn State related to the Jerry Sandusky Scandal. Also Louis Freeh, has refused to turn over some documents to the Commodity Futures Trading Commission (CFTC), which is investigating what happened to an estimated $1.2 billion in missing customer funds, the Wall Street Journal said.

James W. Giddens is a trustee for liquidating MF Global's Trading Operations here is a snippet from one article. The trustee, James W. Giddens, said in a statement that he had identified about $600 million to $700 million in American customer money held at MF Global U.K. That money, he said, was held for clients who traded on foreign exchanges.

But KPMG, the court-appointed administrator for the British subsidiary, disputes that conclusion. In a news release last week, KPMG officials said they had recovered £594 million, or $928 million, of client money and £201 million ( $314 million) of company money. The administrator plans to begin returning money to British customers “as soon as reasonably practicable.”

Just read where they may be getting their first distribution soon in the UK. Also that the UK said they do not have missing money. Check the snippet below on how the lawyers are cleaning up and the clients have gotten zero returned so far.

Jan. 10 (Bloomberg) -- MF Global Holding Ltd.’s U.K. customers demanded their money back at a London creditors’ meeting as administrators KPMG LLP said they racked up 17.5 million pounds ($27 million) in fees since the broker’s collapse without returning anything to clients.

Customers asked KPMG, which was appointed to wind up MF Global’s U.K. unit on Oct. 31, why the process was taking so long and what would happen to money that wasn’t in protected, or segregated, accounts.

Another snippet from a different article.
JPMorgan has fought aggressively in bankruptcy court to protect its interests, and received a lien on some of MF Global’s assets in exchange for granting the firm $8 million to fund its bankruptcy costs. The lien puts JPMorgan’s interests ahead of MF Global customers who have not yet received an estimated $900 million worth of money from their accounts, which remain frozen as regulators search for missing funds.

In Summary we have MF Global parent company trustee Louis working for the creditors and not sharing held documents with the CFTC, and saying that some creditor claims should go ahead of customer claims, Giddens is the trustee for the trading operations. Oh by the way they did do some work for MF Global in the past, but of course that doesn't matter. You have Giddens trying to get money back from the UK and told to go away by them. You have UK getting ready to give a distribution to customers who have not received anything while KPMG LLP said they racked up 27 mil in fees since the broker's collapse.

My understanding is that you cannot sue a company in bankrucpty, so now the lawsuits being against 3rd parties, such as Johnny, and will probably include directors, other companies like JPMorgan, maybe Goldman, maybe CME who did the audits to insure segragated accounts. Its a big mess and I would guess only the lawyers are happy about it.

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Re: Farmers Sue Jon Corzine Over Missing Millions *LINK*