MF Global Customer: My Account Is Missing
December 04, 2011
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New York. As investigators search for an estimated $1.2 billion missing from MF Global customer accounts, one customer says his entire account has vanished and blames the trustee liquidating the firm.
An Illinois-based futures fund on Friday said its more than $50 million account with the broker-dealer unit of MF Global Holdings is missing, and asked a federal bankruptcy judge to order the trustee to find it.
Highridge Futures Fund said the trustee, James Giddens, has refused to help locate its account with MF Global, even after transferring 38,000 other accounts and giving customers access to some of their collateral.
Once run by former New Jersey Governor Jon Corzine, MF Global filed for bankruptcy on Oct. 31 after a bet on European sovereign debt worried markets, causing a liquidity shortfall.
The Highridge fund said Giddens, CME Group’s Chicago Mercantile Exchange and regulators have told it nothing about the status of its account, which held commodity positions and cash.
It said it had been told twice that the account was being transferred, but the transfer never occurred. “This account is nowhere to be found,” said the fund, overseen by Illinois-based Highridge Trading.
The trustee’s office has been in contact with Highridge, and will try to resolve the matter without the need for a court ruling, said Kent Jarrell, a spokesman for Giddens.
On Friday, the House of Representatives Agriculture Committee voted to subpoena Corzine to testify about MF Global’s collapse. A spokesman and a lawyer for Corzine declined to comment.
Investigators believe MF Global may have diverted the missing customer money for its own needs. The amount missing is unclear, but a lawyer for Giddens has estimated the sum could be $1.2 billion or more.
Reuters
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