Updated with correction
A federal judge approved a settlement between the Commodity Futures Trading Commission and MF Global Inc. in which the futures broker will repay $1.2 billion to customers and other creditors who lost money when MF Global went out of business in October 2011.
The CFTC filed an enforcement action alleging misuse of client funds in U.S. District Court in Manhattan on June 27 against MF Global; its parent company, MF Global Holdings Ltd.; Jon S. Corzine, MF Global Holding's chairman and CEO; and Edith O'Brien, assistant treasurer.
U.S. District Judge Victor Marrero entered the consent order on Nov. 8, which mandated MF Global pay an additional $100 million civil fine once creditors are repaid, according to a CFTC news release.
MF Global filed for Securities Investor Protection Act bankruptcy protection on Oct. 31, 2011, and its trustee received approval for the restitution payment from U.S. Bankruptcy Court.
The CFTC has not reached a settlement with MF Global Holdings, Mr. Corzine or Ms. O'Brien, according to the news release.
MF Global clients included the $59.7 billion Virginia Retirement System, Richmond, and Alberta Investment Management Corp., Edmonton, which manages C$70 billion (US$66.9 billion) in pension, endowment and government funds.