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MF Global - Overview

Just in case you haven't formed an opinion yet, Jon Corzine is a dirty crook and the only reason he won't spend many years time in jail is if an incompetent or corrupt (so hard to decide) prosecutor, like Preet Bharara, fails to indict and convict or Obama pardons him. (More pages on this subject in relation to Prosecutorial Discretion at a later date) The American People know that the outrageous corporate crime that has brought our nation's economy to the brink will only be stopped by a Federal Special Prosecutor who can't be stifled by corrupt senior moles within the DOJ.

Update: How prescient can we be?  Read more about "Teflon Jon" here...

Readers who are not associated with the bankruptcy "industry" are expressing an interest in learning how their anger and frustration - with the outrageous status quo acceptance of massive financial fraud - can be channeled into actions to combat corruption. People want these financial criminals and their legal system enablers brought to justice. The MF Global bankruptcy case is proving to be just the sort of case where obvious criminal activity before and after the bankruptcy filing is headed for another cover-up. Sadly, the bankruptcy industry's Quid Pro Quo mega case business model is rearing its ugly head.

Farmers, Ranchers, and other merchants in the Commodities supply chain need not accept the "Corruption As Usual" mentality displayed by government lawyers in the offices of prosecutors, regulators, and judges. Sloth, incompetence, and quid pro quo corruption on the part of these public officials will not much longer satisfy a public which is now recognizing this fundamental breakdown of the rule of law as the cause of our nation's impending economic collapse.

BankruptcyMisconduct will provide you with a number of pages about the MF Global cases. You can find additional pages for a given topic in the menu at the right, by clicking links, or by using our search.

The simple truth about MF Global is that it's managers stole money from their clients

MF Global is a blatant case of pre-petition fraud under the control of Jon Corzine followed by coordinated cover-up

Experienced liars, crooks, and lawyers come up with all sorts of different ways to spew fecal matter out of their mouths. Take for example the "polite" description of a bankruptcy lawyer "failing to disclosure a conflict of interest". While it may be speciously correct to describe such an act as a 'failure to disclose', the simple truth is that the law requires bankruptcy lawyers to investigate, prepare, and file before the court a signed affirmative statement under oath as to all of their connections and relationships to all parties in a case. Thus, when a lawyer prepares a signed sworn affidavit of disinterestedness which "omits" the fact that anyone from his firm received even just $1 (or commonly millions of dollars) from a party in interest in a bankruptcy case, he has committed a crime. The MF Global case shows us another disingenuous abuse of the common English language with the clear intent to obscure blatant crime.

"Comingling" is a term coined by dirty lawyers to help hide and obscure crime by their clients - because the phrase "Stealing Money" is for the pro se.

Short story even shorter: MF Global took their clients money "down to Vegas and bet it all on red". Sure, if they won they were going to "give it back but keep the winnings". That's it. That's the crime. MF Global "comingled" their clients funds "with their own". That is to say, they quietly reached into the pockets of their clients as they stole their cash, put the money into MF Global's gambling accounts, and proudly entered the casino shouting "Yo, we got some fierce money to run with, Dawg!" Another simple description: MF Global woke up one day and saw it had no money, so their executives said "OK, let's just take, oh I mean, "comingle" some of our client's money at least for a couple of paychecks". Of course Comingling is illegal, no question, even Satan's lawyer will admit that.

MF Global lost money by gambling on risky trades, and lost so much they they started gambling with their clients' money and lost that too. Other financial firms discovered that MF Global could not put up the funds they needed, that the funds were gone, and the MF Global fraudulent house of cards came down.

Just like with a Ponzi Scheme as with Madoff, simple financial frauds like with MF Global will always expose themselves. It's too simple, just a matter of time. MF Global lost money and stole from their clients - actually it doesn't matter which came first - the stealing or the gambling. They probably did a bunch of both back and forth. Just remember, it is really simple. A first year law school graduate could convict Corzine and his dirty lawyers, and then put them all away for years.


The cover - up is worse than the crime.

Now, if you are a mega corporate thief, or "executive", and your financial scam runs aground ... Who you gonna call? You're gonna call a cover up bankruptcy team at a BigLaw firm!! Since even before the Leslie Fay case, our Federal Bankruptcy Courts have become a mechanism far beyond corporate welfare, with the right dirty lawyers our Federal Bankruptcy Courts function as a tool to shield corporate criminals from incarceration and civil liability. As if to poke a stick in the eye of lady justice, these dirty lawyers even publicly arrange for additional "retention" and "confirmation" bonus money for many of the very same crooks.

As if the likes of Jon Corzine in a simple story of undeniable theft, falsified documents, and greed was not enough... For reasons we do not yet know, MF Global's bankruptcy lawyers swore before the bankruptcy court that there was no shortfall -- that management had accounted for all the "missing money."

Yeah, as if six hundred million dollars was in the trading account that was on the thumb drive that must have fell out of the server's USB port and behind the snack machine. You know computers, happens all the time.

Of all the tactics that dirty lawyers have employed to cover-up pre-petition crime by dirty executives: swearing on your law license that stolen money was found is pretty ballsy.

Well, Maybe there will be an embezzlement case some day when a half billion that was looted is found? Of course, a few days later the hundreds of millions of "found money" was somehow "lost" again. And you know how hard it is out there for a pimp as well as a dirty lawyer. Yeah, the dollar amount of the lost money is now greater than the initial reports by at least a few hundreds of millions. Mitt Romney almost made a public statement bemoaning this incredible flip flop.

Bankruptcy lawyers have no pride or honor, because this billion dollar bungle was quite the Seppuku opportunity. Sadly, no blood on the dance floor ... not even a few drips of that green lawyer puss they develop from all of that dirty money. Even so, you'd think that lawyers making near $1,000 per hour would have the self esteem, if not common sense, to resign and walk away after something like this happens. Apparently not in the age of bailouts and no-doc mortgages, and no-doc bankruptcy schedules.

Skadden Arps saw this embarrassment as an opportunity to "double down". Rather than cut their "losses", not to mention the intricately intertwined evolving webs of ethical and criminal responsibilities, them Skadden Dogs chose to "lie down" with everybody's favorite Jersey Shore drama whores: Kasowitz Benson.

Stay tuned, we'll have more pages with focused analysis and opinion about MF Global, Corzine, and the inevitable cover-up via illicit prosecutorial discretion.

To those of you who are crime victims: knowing your rights is OK. Like for instance, you have the right to pay a lawyer. Good luck with that. But much better than taking the traditional route of feeding these bankruptcy industry professionals - who in turn are hosting the corrupt bankruptcy playing fields that continue to entice ever more reckless greedy corporate criminals to gamble with your money: Why not get smart? There are far more honest people who are screwed by this sort of organized crime than there are criminals.

You should band together and make your list of prosecutors & politicians that your ad hoc committee decides to designate as your true advocates for justice. Whether they like it or not! And you need to make the commitment to yourselves that failure on their part will result in their being thrown out of office, with indelible testaments to their miserable efforts in public service forever linked with their names in cyberspace. Make it personal, make some public officials own it. Make it last forever. Make his or her replacement in that public office set new priorities.

Hey, the bad guys band together! Where do you think corrupt DOJ & SEC lawyers (and their spouses) get their big incomes from? Why shouldn't you pool your efforts and resources? Is a corrupt public official supposed to be entitled to his quiet enjoyment of a federal pension on top of all of the private grease?