NFA offers help in criminal investigation of MF Global

NFA stepping up

The National Futures Association is offering its help to the U.S. Attorney’s office for the Northern District of Illinois in its investigation of potential criminal conduct surrounding the collapse of MF Global Inc.

In a letter dated April 24 to U.S. Attorney Patrick Fitzgerald signed by NFA President Dan Roth, the NFA offered technical assistance and expert testimony in any such investigation. The letter states, “We are offering such assistance in this case because of the critical importance of the sanctity of customer segregated funds in the futures industry.”

It goes on to state that “Prior to MF Global no customer had evern lost a dime due to the insolvency of a clearing member FCM… Based on published reports, it now appears that the misuse of customer funds at MF Global may have been the result of intentional misconduct.”

The NFA also sent a letter to MF Global Inc. Trustee James Giddens and JP Morgan Chariman and CEO James Dimon urging them to resolve the issue of customer segregated funds transferred to JP Morgan. In the letter Roth states, “…customer segregated funds can retain their protected status even when wrongfully transferred out of segregation.”

Giddens had indicated that some customer funds may be at JP Morgan and that he is talking with JP Morgan regarding those returning those funds.

Letter to US Attorney

Letter to MFGI Trustee & JP Morgan Chair Jamie Dimon


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