As if the situation weren’t already bad, new developments in the MF Global bankruptcy suggests it’s going to get a lot worse.

According to published reports, an MF Global executive admitted to federal regulators in a phone call on Monday, that firm used clients’ money as its financial woes mounted.

Government rules require securities firms to keep clients' money and company money in separate accounts.

It isn't clear whether the violations could lead to criminal charges however Jake Zamansky of Zamansky & Associates tells us, “I fully expect that both civil and legal charges will be filed against the management and Jon Corzine.”

Find out more about the possible legal fall out. Check out our entire conversation with Jake Zamansky. Watch the video now!