U.S. bankruptcy Court Judge Martin Glenn denied a request by the Commodity Customer Coalition to depose former MF Global chief Jon Corzine.
A bankruptcy judge on Tuesday rejected a bid by former MF Global customers to depose the collapsed brokerage’s former chief, Jon Corzine.
In a written ruling in U.S. Bankruptcy Court in Manhattan, Judge Martin Glenn said the Commodity Customer Coalition, which had sought permission to question Corzine and other former MF Global insiders, lacked standing because it is not a direct creditor in the case.
The coalition claims to represent the interests of thousands of traders whose accounts at MF Global were frozen when the company collapsed, but clearly could not prove that to Judge Glenn.
But the coalition itself is merely a “‘watchdog’ entity with its own independent goals,” hoping to depose Corzine “in furtherance of its own interests” rather than those of the MF Global estate, Glenn said in his decision.
Commodities trader James Koutoulas, leader of the coalition, called the judge’s reasoning “the most minute technicality imaginable,” in a phone conversation on Tuesday.
“I could have filed 10,000 versions of the motion, one on behalf of each customer we represent,” Koutoulas said, adding that the coalition is considering appealing the decision.
Though his role in the fall of MF Global is unclear, the coalition asserts that Corzine should face criminal charges for his actions. The Department of Justice, the FBI and many officials have investigated this case, and have spoken with MF Global executives.
Of course, Corzine has denied any wrongdoing in this matter.
Score one for Jon, but how long can legal technicalities protect him? Only time will tell.
For all the gory details, read the rest of the story at Yahoo! News – Canada
Randy – FedUpUSA