CFTC Commissioner Jill Sommers, leader of the agency’s investigation into failed brokerage MF Global, told Reuters that “…we are far enough along the trail that we know where all the money went.” Sommers’ statement comes on the heels of testimony from a CME Group executive claiming he had proof that former MF Global CEO Jon Corzine knew about the transfers out of customer accounts. Corzine has denied commanding anyone to misappropriate client money.
Sommers went on to say “We certainly don’t want anyone to believe that we don’t know what happened. We do know, and we see where all the transactions went.” Now that they Commission has picked up the money trail, they are trying to determine if and when these transactions fell afoul of the law. “It may be gone,” Sommers warned.
CFTC Commissioner Bart Chilton was also pessimistic. In a statement on Wednesday, Chilton urged caution: “Press reports indicate that the CFTC knows the ultimate landing spot of all MF Global customer funds. While I will not discuss the specifics of the investigation, based upon the most up-to-date information available, I do not have confidence that we know where all the money went. Our staff has been working exceedingly hard and they have visuals into many aspects of this investigation, including transfers of some customer funds. That said, a thorough accounting of all customer funds has not been completed and remains a work in progress. We all want a resolution to the ultimate destination of customer money, and we want it returned as soon as possible to the rightful owners. At the same time, the investigation and any potential litigation should only come about after an exhaustive and particularly thorough accounting of the whereabouts and circumstances related to the transfer of customer funds.”