Trustee sues ex-CEO of MF Global

Posted: April 24, 2013 at 2:12 a.m.

NEW YORK — The trustee in the MF Global Holdings bankruptcy case has sued former Chief Executive Officer Jon Corzine and other former executives, alleging that they pushed the company into risky practices that led to its collapse. The lawsuit, filed Monday in bankruptcy court in New York, says Corzine and two other top executives “dramatically changed” the company’s business plan after Corzine became CEO in 2010. They then failed to update controls and other systems that were already weak, the lawsuit says. Corzine pushed the company into making big plays on bonds issued by European countries, the lawsuit says, a move that proved disastrous during the implosion of the debt crisis the next summer. MF Global collapsed in October 2011.

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Business, Pages 23 on 04/24/2013