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The commodities futures trading commission is charging former MF global CEO Jon Corzine with misuse of one billion dollars of customer funds joining me now.
Is the man behind these charges the SEC commissioner Bart Chilton.
Also on set will be here in New York Charlie gasping -- business correspondent who has been all over the story from.
The beginning Bart and thank you for being here you're the man of the hour of today.
The biggest question here is does this disappearance hit all it anyways your perform restitution.
For those that Jon Corzine.
-- Clayton you know misguided and misled and ripped off a dividends.
-- well that there's still it's couple things going on here we have the the -- lawsuit that we are are charging both senator Corzine and ms.
With -- certain things I'm happy to discuss that and then we've got our suit against MF global holdings and MF global the futures commission merchant.
Not to get in the weeds -- sorry but the the MF global a futures commission merchant.
We are trying to reach a settlement with them.
That would require a 100%.
Restitution for customers that has to be approved by the court -- I'm hopeful that will happen but we're working on that.
All right and -- trying to -- give it another S thought well you know bar on our -- I I read most of this the -- of 46 pages the one word that I haven't seen in this case in that you guys put out.
Is a word fraud.
Are you guys charge and Jon Corzine would civil fraud.
Know what -- or Charlie what we're charging him with this violations of the law with regard to segregated funds and segregated -- Our customer money and I know that and note that money supposed to be sacrosanct the and it's a violation of that sort -- a lot of.
It would say this is pretty weak -- if you can't charge a CEO of a company.
That obviously misused funds I mean you can borrow customer funds you just got to put it back that day we all know that.
This is pretty you know you can't know Charlie is joining you this country you get its eye on it but -- what I -- I can't argue with you about the -- but I don't want us talking about coconuts I don't know what I'm talking about Lauren why is it why is it wise or did you not charging with fraud.
If this guy did would did what was so bad which you guys say is so bad.
I don't see a fraud charge itself is seems outrageous and -- -- and it's not just me saying it.
I've been inundated with emails from MF global customers who still haven't gotten their money back by the way they some people have gotten like 7% Senegal this is three years later.
And you guys hit him when a charge that -- fraud which quite frankly two years later.
We wrote on foxbusiness.com.
That he can have the proper controls in place -- years ago.
And two guys two years to come up with this.
-- that may -- should send out a Fox Business police Charlie wolf deputized myself that in the jeopardizing any day I'll take that I'll take that and -- bring the charges within a week.
Well let me tell you what the law is okay and what we tell you how are what we're what we're -- -- -- -- -- pretty charged with fraud.
I'd rather tell you what that what the other half court set what we're saying our court doc I know -- is certainly like to know that's fine.
Okay we'll Barak must talk about about what took so long to get here we want to things our correspondent -- Peter Barnes and we were up involving go to this 47 page complaint.
Obviously it and we're still looking at every page but at the same time you know -- recorded calls the fact that Jon Corzine is it seems to us what we're saying here in the complaint.
He is on record he has been recorded as saying that he didn't want to touch a lot of credit from JPMorgan.
But is that enough to to reach the summit but they're looking for that and up and -- -- mentioned the word fraud is is that fraud or is that just.
In in your opinion.
Is that just the -- course I made a quote mistake.
Our our our allegations and what we filed in court today with regard to mr.
Corzine are that he violated the law with regard to using customer money.
Because he will -- he was he had it was a controlling person.
And with regard to ms.
Albright and that -- aided and abetted in the misuse of those customer funds.
A billion dollars worth of customer funds those are serious violations we're going forward with them and we also have charged an art our our our fourth count.
With regard to mr.
Corzine is with with regard to.
But his ability to fail failure to supervise.
That none of this should have gone on that these these that the nearly a billion dollars in money moving around like a shell game should not have gone on and it was his failure to supervise that caused that to occur -- -- -- serious charges I'm pleased that we're doing it and I hope that that the jury in this case comes up with an -- punishment.
Well what do you think you say the serious charges what are the what are the sanctions what -- what's the worst I can happen to be the day there obviously civil so he's not going to jail.
What is the worst thing that can happen Jon Corzine.
Well we've asked for and you're absolutely right and that's a matter Charlie for as you know the department of justice and -- people do the crime in my view they should do the time not just.
Pay a fine but.
We are asking for disgorge -- and for restitution and for a civil monetary penalties.
Now that what those actually amount to that's going to be up to -- the court.
Ups for the jury to know I hope it's significant you're not here -- -- for a lifetime ban from the futures business or from the securities we we actually are asking for about training event to Charlie thank you very much is that ultimately it's lifetime in his in his yes OK okay yes -- we should point out that I could we but what they should put -- port.
If you guys can't bring a fraud charge against him.
Okay the criminal -- well definitely can't pitch.
Charlie that's great minds think alike market that was my next question do you is about in the criminal side of this I -- -- Marty -- who visited -- -- against the civil lawsuit.
But there is no criminal charges -- there ever going to be criminal charges against on court.
Yeah I really can't speak to -- it's you know out of my lane because I'm not a criminal guy on the civil guy and and depth.
You know there many times where I wish we had more authority in that regard I've spoken about it a lot but today I'm just focused on what we're doing what we're charging given what the laws are right now today.
UK Bart -- CFTC commissioner Bart thank you very much for being -- we -- trying to -- it.
Kelly -- -- not -- has been all over the story did not from the beginning either to deputize me.
I got I don't not.
My contract ends in a couple years maybe I can call -- up.
Maybe -- but I think you guys have I don't have CFTC doesn't have like the cash -- Like the FBI at least something is finally nor the DEA or someone -- needed tourism pages every -- I got that for legal complaint is pretty -- the bar for fraud in a civil case is pretty low.
The question -- He didn't answer why -- -- charged with fraud every MF global customer is asking that right now Charlie thank you very much good stuff.
Thanks for coming -- up.
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