Law and Regulations

Federal judge orders MF Global to pay customers $1 billion

MF Global sign is seen in the office building where MF Global Holdings Ltd have offices in Manhattan on November 1, 2011 in New York.
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A federal judge in New York has ordered MF Global to return more than $1 billion to harmed customers and pay an additional $100 million penalty as part of a civil settlement with U.S. derivatives regulators.

The Nov. 8 court order by U.S. District Judge Victor Marrero for the Southern District of New York was announced by the Commodity Futures Trading Commission in a Monday press release.

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Javers: MF Global to pay over $1 billion

The approval by the judge marks the end of the commission's litigation, initiated in June against MF Global over the brokerage's October 2011 collapse and loss of more than $1 billion in customer money.

The CFTC's civil case against defendants MF Global Holdings, former Chief Executive Jon Corzine and former Assistant Treasurer Edith O'Brien, however, is still ongoing.

—By Reuters