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.
MF Global Inc. will now begin making final distributions to its customers to satisfy its obligation of full restitution for $1.212 billion in losses sustained by customers of MF Global when the company failed in 2011.
PwC, which provided auditing and accounting experts, failed to advise the firm to account properly for its European sovereign debt holdings, leading it to invest too much in them, MF Global said in a complaint.
The MF Global debacle was really a slow motion car crash. There were numerous red flags going back a year and the bottom line is that according to the initial bankruptcy filing, there was capital within MF Global Holdings to cover the shortfall in customer segregated funds but the appropriate regulatory authorities did not demand those assets