James W. Giddens, Trustee for the liquidation of MF Global Inc. (MFGI), is commencing the process of sending out $551 million in distributions to general creditors who have made allowable claims against the MFGI estate.
The secured claims consists of mainly employee wage priority claims and CME Group claims; the unsecured general creditor claims include claims filed by introducing brokers, trade vendors, employees, and others according to the spokesman.
The Trustee is proposing to distribute $295 million to holders of secured, administrative, priority and unsecured general claims. The Trustee is also seeking to establish a reserve of $462 million on account of unresolved claims
This was no small fraud. Coming on the heels in the MF Global debacle, it threatened the entire futures industry structure. One fraud and violation of customers segregated funds is an anomaly, two might be considered a trend.
The CCC was founded by Koutoulas and John Roe shortly after MF Global declared bankruptcy when it became apparent that there was a lack of urgency inside and outside the industry to protect the sanctity of customer segregated funds.