James Giddens, the trustee liquidating MF Global Holdings (MFGLQ) Ltd.’s brokerage, said in a report that claims for breach of fiduciary duty and negligence can be made against employees of the company including former Chairman Jon Corzine, finance chief Henri Steenkamp, and Assistant Treasurer Edith O’Brien.
The trustee declined to make any recommendations on potential criminal liability, saying such determinations were beyond the scope of his mandate. MF Global managers may be liable for some of the $1.6 billion shortfall in customer money, according to the report. Giddens said he will pursue claims through litigation and negotiation.
“I have determined there may be valid claims against individuals and entities,” Giddens said in the report. “In my capacity as trustee, I will make every effort to ensure that such claims result in the greatest possible returns to customers in an efficient and fair manner, whether those claims are pursued by my office or others.”...MORE