Corzine sued by MF Global trustee

ADVERTISEMENT
The collapse caught the attention of Capitol Hill as up to $1.6 billion in customer funds that should have been segregated and protected went missing. Officials unwinding the company now believe customers will recover the vast majority of those funds, and the lawsuit could result in more funds for customers.

The suit comes weeks after Freeh issued his own report on the investment firm's collapse, which found that Corzine engaged in "new and aggressive" trades after taking over in 2010, and the firm lacked the controls to accommodate that new approach in a responsible manner.

In November, House Republicans issued a report that blasted regulators and particularly Corzine for the firm's collapse, calling him the "primary culprit" in the bankruptcy. Lawmakers accused Corzine of creating an "authoritarian atmosphere" in which his risky investing decisions could not be questioned.

A spokesman for Corzine has previously defended him from such claims of negligence, arguing that Corzine took the reins of a firm that had lost money for several years and was trying to turn it around. Allegations of negligent conduct amount to "Monday morning quarterbacking," the spokesman said.