Embezzlement running to 8 figures and Perjury before Congress

Remember ENRON?  In comparison, that was a misdemeanor.

Remember former Democratic Senator John Corzine stating under oath that he knew nothing of any transfer of customer funds?

He lied.

 

MF’s Corzine Ordered Funds Moved to JP Morgan, Memo Says

By Phil Mattingly and Silla Brush | Bloomberg

Jon S. Corzine, MF Global Holding Ltd. (MFGLQ)’s chief executive officer [and former Democratic Senator from New Jersey], gave “direct instructions” to transfer $200 million from a customer fund account to meet an overdraft in a brokerage account with JPMorgan Chase & Co. (JPM), according to a memo written by congressional investigators.

Edith O’Brien, a treasurer for the firm, said in an e-mail quoted in the memo that the transfer was “Per JC’s direct instructions,” according to a copy of the memo obtained by Bloomberg News. The e-mail, dated Oct. 28, was sent three days before the company collapsed, the memo says. The memo does not indicate whether that phrase was the full text of the e-mail or an excerpt.

O’Brien’s internal e-mail was sent as the New York-based broker found intraday credit lines limited by JPMorgan, the firm’s clearing bank as well as one of its custodian banks for segregated customer funds, according to the memo, which was prepared for a March 28 House Financial Services subcommittee hearing on the firm’s collapse. O’Brien is scheduled to testify at the hearing after being subpoenaed this week.

“Over the course of that week, MF Global (MFGLQ)’s financial position deteriorated, but the firm represented to its regulators and self-regulatory organizations that its customers’ segregated funds were safe,” said the memo, written by Financial Services Committee staff and sent to lawmakers.

 

Somehow I doubt the LSM will have much to say about this titanic fraud and perjury before Congress.

Which says a lot about the LSM.

Hat Tip: Ace at Ace of Spades.

Shortlink:

Posted by on March 23, 2012.
Filed under Breaking News, Culture Of Corruption, Democrats, Finance Reform, Scams, Scandals, Wall Street.
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  • GarandFan

    Barry and Company certainly hang out with some INTERESTING people.  Has Holder drawn up the pardon papers yet?

    • MichaelLaprarie

      No, they’re waiting ’till Obama’s last full month in office (which hopefully will be Dec. ’12) then they’ll draw up the papers for Corzine, Blago, Rezko, Angelo Mozilo, Jamey Gorelick, Franklin Raines, and anyone else in Big Finance/Big Banking who might have committed crimes in the last 10 years.  They’ve gotta get their money’s worth for all the millions in campaign contributions and lobbying fees that have gone to the Dems.

      • jim_m

         Yes to all of those except Blago.  He was always on the  outside looking in. They will gladly let those that they don’t count as one of their own rot.

        • mikegiles

           But Blago knows where some of the bodies are buried, and Obama can’t pardon himself; so Blago gets a pardon too.

  • jim_m

    Media won’t cover it and holder won’t prosecute it.  Laws are for your enemies not your friends.  

  • Commander_Chico

    Laws are for the little people.  When it’s Wall Street, they’re “too complicated.”

    • http://profiles.yahoo.com/u/EU5DQWQTTHTPO4A4ZYSL3AAV2U Adjoran

       Isn’t it strange how all the regulation and oversight from the government only seems to inspire new corruption?

      The real problem is that the government doesn’t seek to eliminate crime, but rather to monopolize it.

      • http://www.rustedsky.net JLawson

        It’s almost like the complexity hides loopholes.  Isn’t that strange?

        • Commander_Chico

          It’s been pointed out elsewhere that if nothing else, Corzine could be got for perjury for his “I know knowing” testimony to Congress.

          But I don’t think taking money out of customer accounts is that hard to prosecute.  You could try the general larceny statute.  It’s not prosecutors’ job to argue for the defense right off the bat, but it seems that’s what happens in these cases.

          Also, if it’s $200 million, that’s theft running to nine figures, not eight.

          • jim_m

             $200 M is just rounding error to the obama campaign.  It’s not worth the effort to prosecute.

          • Gmacr1

            “Jon S. Corzine, MF Global Holding Ltd.’s chief executive officer, gave “direct instructions” to transfer $200 million from a customer fund account to meet an
            overdraft in one of the brokerage’s JPMorgan Chase & Co.accounts in London, according to an e-mail sent by a firm executive.”  Customer fund accounts are investment funds that are by law untouchable by the investment firm.

            Corzine is about to discover that he’s screwed with the ‘little people’ and they are out to get their pound of flesh.

  • http://wizbangblog.com/author/rodney-graves/ Rodney G. Graves

    More like the laws don’t apply to 0bama’s friends.

    • http://profiles.yahoo.com/u/EU5DQWQTTHTPO4A4ZYSL3AAV2U Adjoran

      He’s got the best friends who could buy him with money.

      • Commander_Chico

        Corzine was Obama’s biggest fundraiser.  The administration is full of Goldman Sachs people, including the Ambassador to Germany.

        http://jessescrossroadscafe.blogspot.co.uk/2012/03/bill-black-on-mf-global-financial.html

        the ultimate responsibility for the handling of this falls on Barack Obama and his Administration. It happened on his watch, and it was their job to make it right. That is price of leadership.He can continue to ignore it, plead ignorance, and even make excuses, but at the end of the day he should be ashamed at how this was handled, and the Congress and the media along with him. 

        I can only imagine what they would be saying if the President was George W. Bush, and Jon Corzine was his leading Republican fund raiser. With a few notable exceptions, largely solitary voices, where are the so-called progressives on this? Hypocrites!

        I do not expect to see justice done here. There are too many powerful people and interests involved, and justice, being truth in action and not words, is not en vogue for misdeeds of the TBTF financial sector. We are way beyond that with this generation of vipers that has infested the Beltway for the past twenty years.

  • 914

    Crimezine seems to be saying: “The world is Barack, the world is white, together we scheme to make it right..”

    • Brian_R_Allen


      …. will wave his magic wand … um … billy club …. 

  • Hugh_G

    “Somehow I doubt the LSM will have much to say about this titanic fraud and perjury before Congress.”

    Other than The New York Times, MSNBC, the Washington Post……More of the  whining nitwits of the right too lazy to check the facts.

    Never mind that the author of this post’s conclusion of itself is patently false. Nothing whatsoever has been proven. But that would never stop some  of you righties.

    • Commander_Chico

      MF Global looted customer accounts to cover a margin call, stole the money. 

      Corzine lied under oath when he said he had no knowledge of this.

      Just like Cassano and the Fabulous Fab were given a pass for their crimes, Corzine is being let off.

       

      • http://pulse.yahoo.com/_G7YIUZMXOD5JGZZTCYMVA75KFU Shadow

         I thought Sarbanes/Oxley removed the “I know nothing” excuse from the heads of corporations in situations like this.  Am I wrong?

    • jim_m

       Holder’s DOJ dropped charges against the New Black Panthers when they had already won the judgment.  When the obama/holder DOJ is willing to invalidate the rule of law for their political friends in that way what could possibly persuade anyone to think that they would enforce the law on a man who gave the dems millions in campaign cash?

      Corzine will walk on this.  The only way he gets prosecuted is if a GOP Atty General gets installed before the Statute of Limitations runs out.  As for he perjury charges the House leadership will have to engage their own atty to file charges and prosecute.  obama will never alllow the prosecution of a political ally.  NEVER.

      As I said above: To the left, laws are meant to be enforced on your enemies and ignored for your friends.

      • Brian_R_Allen

        …. 
        To the left, laws are meant to be enforced on your enemies and ignored for your friends ….

        Thus — instead of doing the round about 160 years he’s earned – if all his known crimes were first offenses — the treasonous recidivist lying looting thieving mass-murdering perjury-suborning perjurious Civil-Rights-denying fined dis-barred impeached serial rapist Billy-Bubbah Blythe (“Cli’ton”) is looked upon by “Democrats” and by the oligarchy as if an elder statesman. 

        And his recidivist treasonous predatory co-serial-rapist Goody most-stupid-woman-to-ever-take-a-dump-between Two Shoes “spouse,” Bruno, every year blows Scores of Millions of Dollars junketing ceaselessly about the world in our secretary of state’s aeroplane. 

        Gag me. 

        • Commander_Chico

          That’s quite a rant. 

    • Brian_R_Allen

      …. 
      Nothing whatsoever has been proven …. 

      In court. Among anally-retentive Leftard lawyers but I repeat myself. 

      The standards of proof here in the Real World are rather more rigorous but also more demanding of intelligence and common sense. 

    • jim_m

       I just love the hypocrisy of the left that, even when their members are caught red handed, demands that they are utterly innocent until proven guilty and that even private citizens are somehow constitutionally barred from rendering their own opinion on the guilt of their politicians.  They will not ever consider stepping down from office when caught and even push their fellow comrades to vote for indicted felons.

      And yet when a conservative is caught up in scandal they demand that the individual resign.  In fact conservatives must resign for even doing the unseemly, much less the illegal.

      People like Hugh G can go screw.  Corzine is guilty.  Whether or not our feeble DOJ can muster up the ability to prosectue and convict the scumbag in our legal system (note:  It long ago ceased to be anything like a system of justice) is another matter.

    • http://wizbangblog.com/author/rodney-graves/ Rodney G. Graves

      None of whom were on record when my article posted, lackwit.  I did indeed check.

  • David Baskwill

    Can’t wait for his 110 mph getaway attempt in a ford Bronco on the Jersey Turnpike.  I have a case of popcorn ready.

    • http://pulse.yahoo.com/_G7YIUZMXOD5JGZZTCYMVA75KFU Shadow

       Or a report of the morning he doesn’t wake up on a park bench.

  • ackwired

    I don’t know what LSM is (I assume that it is a demonizing term that you commonly use).  But this has been all over the news.  This guy is SO BUSTED.

  • Gmacr1

    If you consider that the story is buried in the back pages then yes, they have covered it. Corzine makes all the other frauds that came before him look like fine upstanding citizens held in high regard. Corzine also did one thing none of the rest of them have done, he violated the rules of investment in that he used funds he had no right to even touch.

    That’s what he needs to go to prison for the rest of his life for if he gets convicted.

  • Commander_Chico

    http://www.zerohedge.com/contributed/2012-12-24/corzine-going-be-best-show-watergate

    Corzine is Going to be the Best Show Since Watergate

    It is hard for me to imagine that Obama can shuck and jive this one. Is he
    really going to revert to his shameful 60 minutes interview where he makes excuses for criminal conduct on Wall Street and twists the logic around to make himself look righteous?  I have to think he may just turn the dogs loose on Corzine, but where does that lead? Corzine was more than a fund bundler, crony, and influence peddler. He was instrumental in stacking the Obama administration with his associates. What happens with CFTC apparatchik and former Corzine employee at Goldman Sachs, Gary Gensler for example? CFTC was charged with regulating MF Global. What about Eric “Empty Suit” Holder, Obama’s attorney general, who never met a Wall Street crime he didn’t like? And what about JP Morgan’s role in this? This should and might be the biggest story since Watergate. My favorite from the wag comment gallery: “Can we possibly take down Corzine, JP Morgan, and Obama all in one fell swoop? No way my life gets that good!!! No way.”

    • Gmacr1

      One of several ‘very interesting’ criminal investigations lurking about this administration but arguably the one with the best possibilities to have rat finks.

      “Most transparent ever” yet they make the Clinton document drops look so tame in comparison trying to figure out what scandal’s information is going to be forthcoming each Friday evening.

      I bet I could do a sitcom that would get top ratings based solely on those antics.

  • Commander_Chico

    http://www.zerohedge.com/contributed/2012-12-24/corzine-going-be-best-show-watergate

    Corzine is Going to be the Best Show Since Watergate

    It is hard for me to imagine that Obama can shuck and jive this one. Is he
    really going to revert to his shameful 60 minutes interview where he makes excuses for criminal conduct on Wall Street and twists the logic around to make himself look righteous?  I have to think he may just turn the dogs loose on Corzine, but where does that lead? Corzine was more than a fund bundler, crony, and influence peddler. He was instrumental in stacking the Obama administration with his associates. What happens with CFTC apparatchik and former Corzine employee at Goldman Sachs, Gary Gensler for example? CFTC was charged with regulating MF Global. What about Eric “Empty Suit” Holder, Obama’s attorney general, who never met a Wall Street crime he didn’t like? And what about JP Morgan’s role in this? This should and might be the biggest story since Watergate. My favorite from the wag comment gallery: “Can we possibly take down Corzine, JP Morgan, and Obama all in one fell swoop? No way my life gets that good!!! No way.”

  • Brucepall

    Months ago when MF Global failed and 1.6 billion dollars of private, supposedly segregated money in individual accounts disappeared  - the regulators, the FBI, and Justice Department swooped in.

    This was even before Corzine resigned and his company filed for bankruptcy.  Within hours of examining the electronic records, these entities knew where all MF Global’s customers funds went, and which big banks were the recipients of the stollen money. 

    So how come Corzine and his minions were allowed to walk away (resign)?  Why isn’t anyone being charged and booked with theft of private account funds at MF Global?  And why are these ill gotten funds not being clawed back immediately???

    The investigators now say 1.6 Billion dollars of individual account money has just, wait for it, just… “vaporized.”  

    WTF! 

    Who’s money was stolen? … um, vaporized?  The little people’s money, that’s who.  Folks like farmers who sold their crops, wheat, beans, and so fourth in the futures market for a known contract price in the future come harvest time.  They all say, the money in their accounts is just gone… and to add insult to injury, they face margin calls on active contracts because their account balances are now zero.

    As bad as it is for those most unfortunate who were robbed while having accounts at MF Global, and the inept keystone cop behavior of the regulators, FBI, and Justice Department… the other shoe which has yet to drop here is – what about you???

    Is your account safe?  Can your bankster/broker/securities dealer be trusted not to make off with your account money too?  Or will you get robbed and stripped in the future as well… and if you are stolen from, will there be justice, and the innocent parties put at the front of the creditor line and be made whole with clawbacks of the ill gotten gains?  

    Thats the real question the rest of the country needs to be asking, and the public needs to see and hear clear concrete actions and answers about it.

    All I hear are “crickets”… and utter BS that individual’s account money just vaporized.

    The real story about Corzine’s MF Global debacle is the longer our government plays with this fire… the more our government risk a loss of confidence in our markets, our banks, and  our US dollar.

    If the American public looses confidence in these… IMHO, its game over for our country’s future.  FWIW

    Semper Fidelis-

     

  • Brucepall

    PS – what I am continuing to hear is that not only has private account money been vaporized, but that the bankrupt trustee is asking that bonuses be paid to the executives now winding down MF Global, and that insurance money be sequestered to pay for the now resigned MF Global executive legal defense fees.

    WTF Is wrong with this picture???

    • http://wizbangblog.com/author/rodney-graves/ Rodney G. Graves

      Everything.

  • Brucepall

    Mr. Graves,  

    Thank you for the affirmation.  I see stuff like this happening all the time, and was beginning to think crony gangster capitalism was running amok, and our country doesn’t care, or is asleep, or worse… as in its time to turn out the lights and leave.

    Every behavior, action, and event like this has profound consequences… millions of them – mostly unseen, unrecorded, and unknown by our citizenry at large.  But the hits just keep on coming. 

    The net outcome?  I believe this can only end badly for our country.

    Semper Fidelis-