Tossed Bomb: Former MF Global CEO Jon Corzine Aware of Money Transfer, Says Senate Witness


Corzine is also the target of at least one lawsuit by former employees of MF Global. Last week, Monica Rodriguez, MF Global's former head of credit for the Americas, and Cyrille Guillaume, managing director of its commodities and stock division in London, sued Corzine and the company's top executives, claiming they lied about its finances and encouraged workers to put their retirement savings into company stock that later plummeted, the Associated Press reported.

The two are seeking class-action status for everyone who got company stock as a benefit of working for MF Global after May 2010.

Jacob Zamansky, an attorney representing the two employees, said Corzine and the company's board breached their fiduciary duty to their employees and "destroyed" their retirement savings.

"Corzine encouraged MF Global employees to invest their retirement savings and compensation in company stock and he destroyed their wealth with his risky and outsized bets on euro sovereign debt," Zamansky told ABC News. "If employees had known MF Global's true financial condition, they could have refused to buy in or insisted on compensation arrangements that were all cash."

Goldberg said he had no comment on Corzine's behalf and that a response to the lawsuit had not yet been filed.

-- This embed didnt make it to copy for story id = 15136945.
  • 1
  • |
  • 2
You Might Also Like...