MF Global Holdings Ordered To Pay $1.21 Bln. In Restitution, $100 Mln. Penalty

(RTTNews) - MF Global Holdings Ltd. (MFGLQ.PK, MF) has been ordered by a federal court in New York to pay $1.212 billion in restitution and $100 million in penalty for misuse of customer funds.

The U.S. Commodity Futures Trading Commission (CFTC), in a statement said, the federal court has ordered MF Global Holdings to pay $1.212 billion in restitution or such amount as necessary to ensure that claims of customers of its subsidiary, MF Global Inc., are paid in full.

In early December, the CFTC filed charges against MF Global for misuse of customer funds and related supervisory failures in violation of the Commodity Exchange Act and CFTC Regulations.

MF Global will also have to pay a $100 million penalty after claims of customers and certain other creditors entitled to priority under bankruptcy law have been fully paid.

CFTC said its litigation continues against the remaining defendants, former MF Global Chief Executive Jon Corzine and the former MF Global Treasurer Edith O'Brien.

MF Global Holdings had announced its bankruptcy filing in October 2011.