Congressional investigators say former MF Global CEO Jon Corzine ordered a $200 million transfer out of the firm in its final days, raising further questions about what he knew of some $1.6 billion missing from customer accounts. In a memo made public on Friday, staff from the House Financial Services Committee cited an internal email from MF Global assistant treasurer Edith O’Brien saying that the $200 million transfer came “Per JC’s [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][Jon Corzine’s] direct instructions.” This money, sent to JPMorgan Chase to cover an overdraft, came from customer accounts, the memo says, a gross violation of industry rules. The memo does not say whether Corzine knew the transfer in question came from customer accounts. Testifying under oath before the House Financial Services Committee in December, Corzine acknowledged ordering this transfer to resolve the overdraft but said he had no indication that the funds belonged to customers. “I contacted the firm’s back office in Chicago, and others, and asked them to resolve this issue, which I understood they did,” said Corzine, a former governor and senator from New Jersey. Later in the day, he added, JPMorgan staff contacted him to make sure that the fund transfer did not violate industry rules. “Since I had no personal knowledge of the issue, I asked senior people in the back office and the legal department to become directly involved in responding to JP Morgan Chase’s request,” he said. “I had explicit statements that we were using proper funds, both orally and in writing, to the best of my knowledge.”
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