Memo Reveals: Corzine Did Steal Investor Funds and Perjured Himself Before Congress

By: Andrea Ryan

Everywhere you look in the Obama regime there’s a scandal.  This time it involves fraud, embezzlement, breach of fiduciary duty, perjury to Congress, and theft…of over a billion dollars.  Now, we can identify at least $200 Million of it was transferred from a customer’s fund account to cover an overdraft in a brokerage account with JPMorgan Chase.  Corzine made the fatal mistake of all Liberals by thinking that money will just come from the heavens to cover the high risk, junk Greek bonds he invested in.

Via Lucianne, according to Bloomberg,

Jon S. Corzine, MF Global Holding Ltd. (MFGLQ)’s chief executive officer, gave “direct instructions” to transfer $200 million from a customer fund account to meet an overdraft in a brokerage account with JPMorgan Chase & Co. (JPM), according to a memo written by congressional investigators.

Edith O’Brien, a treasurer for the firm, said in an e-mail quoted in the memo that the transfer was “Per JC’s direct instructions,” according to a copy of the memo obtained by Bloomberg News. The e-mail, dated Oct. 28, was sent three days before the company collapsed, the memo says. The memo does not indicate whether that phrase was the full text of the e-mail or an excerpt.

O’Brien’s internal e-mail was sent as the New York-based broker found intraday credit lines limited by JPMorgan, the firm’s clearing bank as well as one of its custodian banks for segregated customer funds, according to the memo, which was prepared for a March 28 House Financial Services subcommittee hearing on the firm’s collapse. O’Brien is scheduled to testify at the hearing after being subpoenaed this week.

“Over the course of that week, MF Global (MFGLQ)’s financial position deteriorated, but the firm represented to its regulators and self-regulatory organizations that its customers’ segregated funds were safe,” said the memo, written by Financial Services Committee staff and sent to lawmakers.

Steven Goldberg, a spokesman for Corzine, said in a statement that Corzine “never gave any instruction to misuse customer funds and never intended anyone at MF Global to misuse customer funds.”

JPMorgan Overdraft

Vinay Mahajan, global treasurer of MF Global Holdings, wrote an e-mail on Oct. 28 that said JPMorgan was “holding up vital business in the U.S. as a result” of the overdrawn account, which had to be “fully funded ASAP,” according to the memo.

Barry Zubrow, JPMorgan’s chief risk officer, called Corzine to seek assurances that the funds belonged to MF Global and not customers. JPMorgan drafted a letter to be signed by O’Brien to ensure that MF Global was complying with rules requiring customers’ collateral to be segregated. The letter was not returned to JPMorgan, the memo said.

The money transferred came from a segregated customer account, according to congressional investigators. Segregated accounts can include customer money and excess company funds.

Corzine Testimony

Corzine, 65, in testimony in front of the House panel in December, said he did not order any improper transfer of customer funds. Corzine also testified that he never intended a misuse of customer funds at MF Global, and that he doesn’t know where client funds went.

Don’t forget, this is the man Joe Biden called for advice about the economy.

And they wonder why the economy failed, the stimulus failed, and we have an additional $5 Trillion in debt in 3 1/2 years.

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  • Tim in Cali

    A crooked GOV. from N.J…which episode of the Sopranos was this?

  • just-saying

    So, when is this criminal going to be charged with a crime?

  • sanmon

    Headline should read “Corzine shows White House how to steal Americas Money”

    It Obama money now Baby

  • American Patriot

    This IS a big F*&%ing deal!

  • Carbon Pootprint

    typical democrat

  • jainphx

    The whole crowd from the left is completely crooked! They should all be in orange jump suits, starting with Corzine, and then Obama.

  • http://none tommy mc donnell

    if the RNC doesn’t use that clip in the campaign you know they are inthe tank.

  • kathteach

    I completely agree with American Patriot – this is a BIG story.

    Corzinne and his fund undermined trust in the system more than all the fic\ve big banks did in 2008.

    He needs to spend the rest of his life in jail for lying to Congress and frauding his clients. Why has nothing happened?

    Oh – yes – perhaps because he was an Obama bundler with a “deadline” to meet. He met it and so he gets a free ride?

  • jim m

    odds are that Holder will never prosecute him.

  • StrangernFiction

    Ho hum, ‘rats are scum.

  • usamopatriot

    In a sane world the democrat party would not survive this next election. But there are too many insane libtards and entitlement sucking lowlifes that vote for the SOB’s. We can but hope that there will be a day of reckoning for scum such as this.

  • Multitude

    NOT a big deal. Not a big story. The media’s already yawning and ignoring it.

    This is business as usual for the progressives. Ask yourself why this is any different than the hundreds of billions blown by President Obama on solar, electric cars, GM, algae, unicorn methane, whatever. Hell, since FDR was in power we’ve had a growing progressive economy that consists of deeming things, wishing and magically having things materialize (while robbing our neighbors to make up for the strange lack of magical powers our miracles require).

    Even Romney knows Corzine’s actions are totally typical. The reality you all don’t want to acknowledge is that Capitalism is dead, at least when loaded up with all the parasites the progressives have injected into the bloodstream. Private equity, Romney’s world, knows this is true. The only way we can make a buck now is to get ahead of the tapeworms and roundworms (big labor and big government) in the bloodstream and feast upon the dying body first. That’s private equity, Romney’s world.

    America’s dead, people. Sorry for the bad news, but too many allowed themselves to be distracted with the trinkets given to them by the elites while the host was slaughtered. Progressives on both sides killed it. Don’t blame Corzine for doing what Romney, Soros, Obama and others are doing. You can’t suck that much blood out of an economy with all the freeloaders and expect it to survive. If you’re going to blame Corzine, you need to look in the mirror and ask yourself about Romney and the rest that are no different.

  • coolidgerules


    Some of these clowns on the Republican side of the aisle have/are in on all this sh&t as well. They just have a different priorities than the Dems. They like the control and power of their committees and chairmanships to dictate the money to their friends. They undermine everything that our forefathers fought to keep and kept vigilant watch over. And people vote for them because they are not democrats, when in fact they are nothing more than that-democrats of a different name. They need to go as well. We have to be up to the task of not playing our side vs. your side and politics but doing what is right. I have resigned that this task is worth it and will take quite a long time. From that point on and for the rest of my life, I will do what ever I can to ensure that it stays that way.

  • James

    Corzine is a democrat so nothing to see here. The lib media will embargo the story and give corzine a hot bubble bath like they did with sandy berger.

  • Blacque Jacques Shellacque

    Corzine Did Steal Investor Funds and Perjured Himself Before Congress

    So when exactly is the bastard going to be charged, convicted, and imprisoned?

  • donh

    And JP Morgan Chase had the nerve to close its Vatican bank account because Obama put them on a money launder watch list…..Yet they took embezzled funds from Corzine without receiving return of a signed letter the funds were proper….and they are sill holding that $200 million stolent from private accounts ..right ? If Republicans want re-eletion, they best start cuffing some of these fascist bankster criminals who think political donations and connections can save their a$$ from feduciary crimes.

  • Patty

    We are looking as corrupt as some nations in the Middle East there people are in hell and we are moving towards it. Unless we have some honest people to takeover we are done.

    Corruption, lies, insensitivity towards other human being, and I do agree with one thing, they don’t understand why when they throw our money out the window and have intellects no better than snakes, it will follow that we all pay the price for their criminal actions.

    I never understood the crook, I never will. They will be caught eventually and with Corzine as a dear Friend to Obama we have more ammunition in the upcoming election.

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  • the Boodge

    In a good honest society people like this would be hung for their CRIMES!