NEW YORK, Nov. 4, 2011 (GLOBE NEWSWIRE) -- The national securities law firm of Dimond Kaplan & Rothstein, P.A. is investigating claims against MF Global and MF Global's principals to recover money missing from MF Global client accounts. MF Global has admitted to regulators that it used clients' money in an attempt to shore up its finances. The firm believes such a misuse of client funds violated regulatory rules and legal duties owed to the clients. There appears to be more than $600 million of missing client funds. Government rules require securities firms to keep clients' money and company money in separate accounts. MF Global clients whose money is missing may be able to recover that money through FINRA arbitration claims or court cases.
MF Global was run by Jon Corzine, the former Chairman and CEO of Goldman Sachs and former U.S. Senator and then Governor of New Jersey. Mr. Corzine has just resigned from the firm. MF Global recently filed for bankruptcy protection after making $6 billion in bets on European sovereign debt. In August 2011, the Financial Industry Regulatory Authority (FINRA) instructed MF Global to increase its required net capital because of its exposure to European debt. It has been reported by news organizations that MF Global may have improperly used hundreds of millions of dollars of client's money in an attempt to comply with its regulatory obligations.
The company's main exchange regulator, CME, said that MF Global did not separate its customers' accounts from the firm's funds as required by law. "CME has determined MF Global is not in compliance with Commodity Futures Trading Commission and CME customer segregation requirements," CME Group Inc. Chief Executive Craig Donohue said. The U.S. Securities and Exchange Commission, the Commodities Futures Trading Commission, and the FBI all are investigating the matter.
Dimond Kaplan & Rothstein, P.A. represents MF Global clients and is exploring the various options available to recover money missing from MF Global client accounts. If you are an MF Global client and your money is missing, please contact attorney Jeffrey Kaplan at (888) 578-6255 or jkaplan@dkrpa.com for free consultation. You also can visit the firm on the web at www.dkrpa.com or www.investmentfraud-lawyer.com. The firm represents investment fraud victims throughout the United States and Latin America from offices in New York, Miami, West Palm Beach, and Los Angeles.
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