Federal regulators are set to announce on Thursday a lawsuit against Jon S. Corzine, the former chief executive of MF Global, in connection with the brokerage firm’s misuse of customer money during its final days, according to a person briefed on the matter.
The Commodity Futures Trading Commission, the federal agency that regulated MF Global, is expected to accuse Mr. Corzine of failing to prevent a lower-level MF Global employee from transferring customer money to banks and clearinghouses. The agency also plans to announce a lawsuit against that employee, Edith O’Brien, who oversaw the transfer of customer money from the firm’s Chicago office.
Mr. Corzine has indicated that he will fight the charges. In a statement, a spokesman for Mr. Corzine denounced the trading commission for planning to file what he called an “unprecedented and meritless civil enforcement action.â€
If found liable, Mr. Corzine could face millions of dollars in fines and possibly a ban from trading commodiies.
The trading commission has scheduled a press conference for 2:30 p.m. to announce the civil charges.
