MF Global to make final restitution payments
© Copyright Agri-Pulse Communications, Inc.
WASHINGTON, April 3, 2014-- The trustee for MF Global announced that the company will begin making final distributions to its customers to restore lost funds of over $1 billion sustained by customers of MF Global when the company failed in 2011, according to the Commodity Futures Trading Commission (CFTC).
In addition to full restitution, a New York District Court Order in November 2013 imposed a $100 million civil monetary penalty on MF Global, to be paid after MF Global has fully paid customers.
“Throughout the Division's investigation and ongoing litigation, ensuring full restitution to customers has been a primary focus,” said Gretchen Lowe, Acting Director of the CFTC's Division of Enforcement. “I am pleased that the terms of the consent Order are now being fulfilled and that these final restitution payments will satisfy the remaining shortfall.”
After MF Global went bankrupt, CFTC filed a complaint charging MF Global with unlawful use of customer funds. In the consent Order, MF Global admitted to the allegations pertaining to its liability based on the acts and omissions of its employees.
For more news, go to www.agri-pulse.com