MF Global has been given clearance to make final distributions to customers who lost money after the firm filed for bankruptcy in October 2011, according to a news release from the Commodity Futures Trading Commission.
A settlement that required futures broker MF Global to repay $1.2 billion to clients was approved by Manhattan U.S. District Judge Victor Marrero on Nov. 8.
MF Global must pay an additional $100 million civil penalty after all clients and “certain other creditors” have been fully paid, the news release said.
The restitution stems from the CFTC's enforcement action in U.S. District Court in Manhattan alleging misuse of client funds 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.
The CFTC's litigation against MF Global Holdings, Mr. Corzine and Ms. O'Brien, continues.
MF Global clients included the $58.3 billion Virginia Retirement System, Richmond, and Alberta Investment Management Corp., Edmonton, which manages C$70 billion (US$63.5 billion) in pension, endowment and government funds.