Jon Corzine Off The Hook

After 18 months of investigation, the criminal probe against Jon Corzine has been dropped. He will not be facing criminal charges for the misuse of investors' funds at MF Global. Civil charges have been filed against Corzine.

The Justice Department’s decision to drop the case is sure to come as a relief to Corzine, who has been widely blamed for MFG’s bankruptcy — as well as the misuse of some $1.6 billion in customers’ funds.

Last week, Corzine was hit with civil charges by the Commodities Futures Trading Commission in connection with the illegal tapping of the funds, which were improperly co-mingled with the MFG’s house money in the firm’s final days.

The regulator also charged Edith O’Brien, MFG’s former assistant treasurer, for carrying out the illegal transfers in a desperate bid to keep the troubled company afloat.

Both Corzine and O’Brien have denied the allegations.

Criminal investigators, including federal prosecutors and the FBI, have been probing the breach since shortly after it was uncovered with its Halloween 2011 bankruptcy.

*Minor correction made to this article. Apparently Corzine spells his first name without an "H" like Jon Huntsman.

posted by BenK at 11:13 AM

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