John Corzine agreed to resolve charges brought by the Commodity Futures Trading Commission related to his oversight and control of MF Global Inc. in connection with the future commission merchant’s October 2011 collapse after the firm used nearly one billion US dollars of customer-segregated funds to support its own proprietary positions. At the time, Mr. Corzine was the chief executive officer of MFGI, as well as CEO and chairman of the board of MFGI’s parent corporation, MF Global Holdings Ltd. ("MFGH"). Similarly, Ms. Edith O’Brien — the former assistant treasurer of MFGI – also agreed to settle CFTC charges brought against her for her role in the firm’s collapse. The CFTC filed a civil lawsuit against Mr. Corzine and Ms. O’Brien as well as against MFGH and MFGI itself in June 2013 in a federal court in New York. The CFTC charged all four defendants with failing to segregate customer funds as required by law and for misusing customer funds. MFGH and Mr. Corzine were charged as controlling persons of MFGI; Ms. O’Brien was charged with aiding and abetting MFGI’s wrongful conduct; and MFGI and Mr. Corzine were also charged with failure to supervise. MFGI and MFGH previously settled the CFTC actions. (Click here to access details regarding the CFTC’s complaint in the article “CFTC Files Long Awaited Enforcement Action Related to MF Global Collapse” in the June 27, 2013 edition of Bridging the Week.) Mr. Corzine agreed to pay a fine of US $5 million to resolve the CFTC’s enforcement action, committing to remit such funds solely from his personal assets and not from insurance proceeds. He also agreed never to act as a principal or employee of any FCM or ever to apply for registration with the Commission in any capacity. Ms. O’Brien agreed to pay a fine of US $500,000 to resolve this matter and consented not to act as a principal or employee of any FCM for 18 months. Neither Mr. Corzine nor Ms. O’Brien was required to admit to any substantive allegation in the original CFTC complaint or in the consent orders to resolve their CFTC litigation. Approximately two and one-half years after MFGI’s collapse, all customers of the firm were repaid all balances the FCM owed them. (Click here for details of this distribution in the article “MF Global Inc. Trustee Announces Final 100% Distribution to Customers” in the April 7, 2014 edition of Bridging the Week.)