Rep. Grimm Calls on Attorney General Holder to Bring Perjury Charges against Jon Corzine for MF Global

Jun 27, 2013 Issues: Financial Services

WASHINGTON, DC – Today, Rep. Michael G. Grimm (R-SI/Brooklyn) renewed his call for Attorney General Eric Holder to bring criminal charges against Jon Corzine for the collapse of MF Global and the theft of $1.6 billion in customer funds, citing evidence of perjury. Rep. Grimm’s announcement comes in light of today’s news that the CFTC has filed a civil suit against Jon Corzine and Edith O’Brien over MF Global. The civil suit provides further evidence that Jon Corzine lied to Congress on his role in MF Global’s collapse.

lRep. Grimm issued the following statement:

“I am renewing my call for Attorney General Eric Holder to bring criminal charges against Jon Corzine regarding the collapse of MF Global and the theft of $1.6 billion in customer funds. Today’s civil action by the CFTC against both Mr. Corzine and Edith O’Brien reveal that there was in fact knowledge that customer funds were at risk – evidence that contradicts Jon Corzine’s testimony in Congress. 

“This civil suit is a good first step which could result in severe monetary penalties as well as a lifetime industry ban. However, these possible punishments are not enough. Only criminal charges would carry a prison sentence, and today’s CFTC complaint shows clear evidence of perjury. 

“Attorney General Eric Holder has failed to do his job by refusing to bring up criminal charges against Jon Corzine. There is growing proof that Mr. Corzine perjured himself before multiple House and Senate Committees as evidenced by numerous recorded phone calls prior to MF Global’s bankruptcy referenced in today’s civil complaint by the CFTC. It’s time for the Attorney General to stop protecting one of its political loyalists and stand up for the victims of MF Global by bringing Jon Corzine to justice.”

The CFTC complaint filed today lays out several instances that contradict statements Jon Corzine made in testimony before Congress, as well as demonstrate that Jon Corzine did in fact have knowledge that MF Global customer funds were unlawfully transferred from segregated accounts. One example is found on pages 23-24 of the CFTC’s complaint and is posted below.

Rep. Grimm – a former FBI agent tasked with investigating financial crimes and current member of the House Financial Services – first brought up potential perjury charges against Corzine when questioning a DOJ staffer in a FSC hearing. Watch the video from March 22, 2013.  In addition, on May 14, 2012, Rep. Grimm led 64 House colleagues in sending a letter to A.G. Holder calling for a special counsel to investigate MF Global.

 

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Corzine’s Statements to Congress vs. CFTC Complaint

In 2011, Jon Corzine gave the following statements to Congress:

  • "I simply do not know where the money is."  -made in written and verbal testimony before House and Senate Agriculture Committees (Dec. 7, 2011; Dec. 13, 2011)
  • "I was stunned when I was told on Sunday October 30, 2011, that MF Global could not account for many hundreds of millions of dollars of client money.” - written testimony to Senate Agriculture Committee (Dec 13, 2011)
  • "I did not, however, generally involve myself in the mechanics of the clearing and settlement of trades, or in the movement of cash and collateral."  - written testimony to Senate Agriculture Committee (Dec. 13, 2011)

Today’s CFTC Complaint against Jon Corzine and Edith O’Brien states:

“On the afternoon of October 27, Corzine spoke to Employee #1 on a recorded telephone line to strategize how they could use customer segregated funds to induce JPM to clear MF Global’s trades more quickly:

Corzine: We have a money management account at Chase, if my memory serves me

Employee #1: Yeah, it’s the JP Morgan Trust account, but that’s cash seg for clients -- it has nothing to do with greasing our wheels for Chase to move.

Corzine: I understand but you put it in a tri-party, and then once the securities have started moving, then you move it back to the, um --this is the same thing we did last night, they left it in the tri-party, the seg money.”