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He Just Lost Track of It

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Jon Corzine is the high-finance billionaire who (as is his right) used a goodly chunk of his money to win a Senate seat, and then the Governor's chair, in New Jersey. After he left public "service," he became head of MF Global Holdings, Ltd.  

Under Mr. Corzine's leadership, Global went belly-up, taking more than a billion (that's "billion" with a "b") of investors' money with it.  When called before Congress to explain what happened to the dough, Corzine said, gosh, he just didn't know.  

Not buying this "explanation," the Commodity Futures Trading Commission has filed a civil suit against Corzine seeking restitution for the investors, penalties, and a permanent ban on Corzine's financial escapades.  The WSJ has the story here.

The question is:  Why is this not a criminal case?  The CFTC complaint is essentially that Corzine diverted what was supposed to be segregated investor funds to try to head off the bankruptcy his reckless bets on European debt made inevitable.  When I was an AUSA, that sort of "diversion" was a polite name for theft.

P.S.  As Governor, Corzine made a somewhere-beyond-smug statement in signing the bill that ended the death penalty in his state.

2 Comments

"The question is: Why is this not a criminal case?"

The answer is: Sen. Corzine (D).

Our friends on the anti-DP side love to claim proof from statistical correlations. What is the coefficient of correlation, in the last decade or so, between a governor being an anti-DP crusader and his being a crook?

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