Jon Corzine was sued by the bankruptcy trustee liquidating MF Global Holdings, who accused the former chief executive of engineering a high-risk business strategy that culminated in the commodities brokerage's destruction.
Louis Freeh, the trustee, accused Corzine of breaching his duties to shareholders and failing to act in good faith, causing MF Global under his stewardship to lose well over $1 billion in value prior to its October 2011 bankruptcy.
"The company's procedures and controls for monitoring risk were lacking and in disrepair," Freeh said in a lawsuit filed Monday night in U.S. bankruptcy court in Manhattan. "Corzine engaged in risky trading strategies that strained the company's liquidity and could not be properly monitored."
Also named as defendants were former MF Global President and Chief Operating Officer Bradley Abelow and former Chief Financial Officer Henri Steenkamp.