(Reuters) – The trustee liquidating MF Global's broker-dealer said he may bring civil lawsuits against some of the company's employees in connection with a massive shortfall in customer funds created in the days leading up to its collapse.
Trustee James Giddens said in a statement on Thursday he may assert claims for breach of fiduciary duty and for violating rules governing the segregation of client funds. Giddens referenced "individuals at" MF Global's parent company and its broker-dealer, but did not name potential targets.
Giddens' spokesman, Kent Jarrell, said the individuals include officers, directors and other employees, but declined to say whether former Chief Executive Jon Corzine was among them.
Corzine left the company in November, days after MF Global went bankrupt amid investor fears about its exposure to risky European debt. According to a February report from Giddens, MF Global improperly used client funds to cover corporate transactions as the company sank, creating an estimated $1.6 billion shortfall in customer accounts.
Keep reading: MF Global trustee may sue company employees | Reuters.
