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FBN’s Charlie Gasparino on prosecutors’ potential MF Global criminal case and Edith O’Brien possibly getting immunity.
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-- welcome back of the Fox Business Network was first to report others followed the criminal case over the and that global implosion in use of customer funds -- slim to none.
All that has changed -- Charlie Gasparino has the exclusive details with us now Charlie so you're saying according to face -- don't.
Smart as brown said initially that it was unlikely they were moving away from a criminal case report.
-- -- customer money bright when the firm imploded back in November of last year was due to like just this confusion you know running a brokerage firm -- not easy.
What we know now is that the criminal investigation is back on its back on the high burner on the front burner why is that.
Comes down to one person one person only -- -- O'Brien former assistant trade as secretary.
Treasurer of MF global -- what we what we know now from inside this investigation -- this that the last couple days that there have been high level discussions among prosecutors.
About giving her immunity they really believe she has the key to exactly who said what to whom.
About -- about about using customer money dreading those frantic final days schools implosion.
We should point out that you know mr.
Corzine is at the center of this probe because of that and what we will we know now is that prosecutors are not just looking for.
Whether Corzine he'll only be you know was -- it was illegal -- of course I gave the okay to use that money there's also something called conscience avoidance.
That's when you know a criminal act is going down even if you don't.
Even if you haven't been given liked eggs exact details like for example from if you tell.
Ms.
O'Brien just do it takes two to get -- doomed to satisfy your creditors on the other line on the other and even if it'd be -- -- you don't explicitly -- use the customer money.
You're consciously avoiding the crime and they are looking at that right now but here's what we do know is that this issue of whether she gets immunity.
Is coming down to the wire right now and we don't know the timing we do know that in the last couple days they've been they've been actively discussing it I will say this.
I believe based on the conversations I've been having that they are leaning toward giving her immunity and that puts mr.
mr.
Corzine.
Back on -- -- particularly in a criminal in a criminal way.
Never before it was to it was mainly a civil case I mean the prosecutors.
People -- US attorney's office for the southern district and the -- attorneys -- Chicago is thought this was confusion.
But let me tell you something if she said -- -- those -- that came out.
He came back and said well we do know that was -- for money in -- -- it was just segregated money.
If she came back -- says listen he had to known in this customer and -- so we had those things or some along those lines which is what.
Federal prosecutors are looking at right now he's back in big time trouble now -- before she took the fifth right she took the fifth before the the house subcommittee investigating the matter she'd been asking for immunity at that time you -- -- what you remember -- granting immunity is very rare and from what I understand the prosecutors were not gonna give that out why that rare.
You don't wanna grab some immunity who could be the target of your case right they could spill the beans about themselves and you -- you might not be able to charge them that's what grant communities all about.
But they think they think she's either key.
To understanding the whole mess really unraveling who said what to whom and only that possibly key.
To implicating senior people -- MF global including Corzine whether he explicitly gave the or go -- to use customer money.
Or whether he willfully and consciously avoided the fact that he knew -- from what he had to been used during those final they have to be tough to per.
I don't know I mean I will say that -- see it you know eight.
If you have a witness saying that you know you couldn't it be that you don't they said you can and you can get a grand jury to indict a ham sandwich if she goes it says was he had to know this because there was no when he gives a plausible explanation.
That why Corzine had to know even those segregated accounts had because for money being used.
-- it is a good chance he gets indicted how much say he's gonna go to jail but I'm saying it's a good chance he's indicted we should point out we don't know exactly what she's gonna say.
I don't know -- prosecutors know exactly what she's gonna sit there have been conversations.
With her lawyers.
And Corzine about some of the stuff she might say around the edges -- -- lawyers -- her lawyers and the justice -- about what you might say.
And that's what's leading to this very active discussion right now I will say this based on my knowledge of the sort of stuff I mean.
I think they're gonna make the decision on her immunity like really soon I think the this is do you think they got more tempting though because I mean all along we've been hearing you know she wants immunity they're not gonna -- a -- she -- -- -- the -- what she really know about sort of thing it seems like now they're attempted.
So there must be something more -- members he -- she gave the fifth to that house committee you to watch right now the house.
Financial services subcommittee that I reservations that's her right there -- that's where she pled the fifth that's she asked for immunity from them.
But the separate thing is what's really to be a major investigations with criminal prosecutors looking at.
And that's where -- have been discussions with her attorneys the criminal the criminal authorities and this notion of immunity where I think.
They are getting comfortable with doing now -- say they're definitely -- I didn't have room I wish I was a flying to war but I can tell -- that this thing is heating up.
Corzine is back on the hot seat in a criminal way that doesn't mean what he did was illegal I'm not making that determination right they are looking at it actively.
People want to know what he knew when and where that money went and it columns and so right here in the (%expletive) does that work.
Can -- legitimate and place Sargent Schultz.
No yeah not really well Google's view if -- no other way.
There it was and you running a big firm is a bunch of accounts if there's no -- -- -- then.
When you say used to segregate accounts because from when he has to be -- you go up there and say well I did it.
Interesting are right Charlie Gasparino always -- the way we appreciate it.
