MF Global General Counsel to Testify
A $1.6 billion shortfall in customer funds at MF Global Holdings Ltd. is the subject of a fifth investigatory hearing by the House Financial Services Committee scheduled for Wednesday, March 28th.
Laurie Ferber, MF Global’s general counsel, is expected to break her silence on the situation. “My impression throughout the afternoon and late into the evening was that the apparent deficit was a reconciliation issue and did not represent an actual shortfall in customer funds,” she plans to tell the oversight panel, according to the New York Times.
Edith O’Brien, an assistant treasurer in MF Global’s Chicago office, will also appear before the House panel but is expected to invoke her constitutional right against self-incrimination. Other expected witnesses include MF Global financial executives Christine Serwinski and Henri Steenkamp.
Congressional investigators published an email recently indicating that MF Global CEO Jon S. Corzine gave “direct instructions” to move $200 million from an MF Global account containing customer funds three days before the securities firm collapsed, despite his claims to the contrary.
At issue is MF Global’s alleged violation of rules prohibiting the mingling of customer and firm money.
Contact Fort Lauderdale securities litigation attorney Howard N. Kahn, Esq. if you or someone you know invested funds at MF Global. In addition to being an experienced securities litigation attorney, Mr. Kahn also serves as a FINRA arbitrator for individual investors, brokers, and brokerage firms. You can reach him at 954-321-0176 or online.
