Liar. Liar.

Damning email surfaces, ties former NJ Corzine to illegal money transfer

Former New Jersey governor Jon Corzine may have been caught telling lies to Congress about the collapse of his international brokerage house, MF Global.


Jon Corzine


A potentially damning email from an MF Global executive dug up by congressional investigators and released Friday says Corzine ordered that $200 million be transferred out of a customer’s account — violating protocols — 3 days before the firm went belly up.

Former New Jersey governor Jon Corzine looks like he has been caught telling lies to Congress about the collapse of his international brokerage house, MF Global.

In the email, sent last Oct. 28, former MF Global assistant treasurer Edith O’Brien says Corzine directed the funds to be moved overseas to cover a shortfall in a company account with JP Morgan in London. It noted the transfer was made “per JC’s direct instructions.

If true, that would contradict the embattled ex-pol’s earlier statements to a House Financial Services subcommittee that he“never gave any instruction to anyone at MF Global to misuse customer funds.”

Client accounts, by law, are required to be kept separate from a firm’s funds to protect investors in the event the company fails.

MF Global, for which Corzine served as CEO, declared bankruptcy last Oct. 31, after sinking $6 billion into European government bonds just before the financial crisis spread across the continent. Some $1.6 billion in client money has never been recovered. Where’s the rest, John?

Barry Zubrow Executive Vice President and Chief Risk Officer for JPMorgan Chase Barry Zubrow speaks during a hearing before the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill November 13, 2008 in Washington, DC. The hearing was focused on "Oversight of the Emergency Economic Stabilization Act: Examining Financial Institution Use of Funding Under the Capital Purchase Program."

JP Morgan’s chief risk officer, Barry Zubrow, reached out to Corzine for assurances that he would be using company — not client — money to cover the overdraft, Bloomberg News reported. He also asked O’Brien to sign a letter certifying the same. It was never signed.

Pants on fire.


About Steve King

iPeopleFINANCE™ Chief Operating Officer. Former CEO of Endymion Systems, Inc. a $36m Information Systems Services company. Co-founder of the Cambridge Systems Group, the creator of ACF2, the leading IBM Mainframe Data Center Security product; acquired by Computer Associates. IBM, seeCommerce, marchFIRST, Connectandsell alumni. UC Berkeley alumni. View all posts by Steve King

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