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Farmers Sue Corzine Over Their Missing Money

ABC News reports the latest legal development for former Democrat senator, former Democrat governor, Obama Administration economic guru, and top Obama money man Jon Corzine:

Montana farmers have filed a class action suit against former New Jersey governor Jon Corzine, charging that the failed financial firm run by Corzine stole millions from their accounts to pay off its spiraling debts, and that Corzine’s “single-minded obsession” with making MF Global a big player on Wall Street led to the firm’s collapse.

MF Global’s clients included 38,000 wheat farmers, cattle ranchers and others who “hedged” their crop prices by placing millions in MF Global accounts. Those accounts were supposed to be “segregated and secure,” according to the federal suit, meaning MF Global could not draw on those funds.

Funny how you never hear about that from the class warfare crowd, isn’t it?  Corzine is such a perfect example of a rapacious predator eviscerating the little guy for his own benefit that he could have been assembled by Mother Jones in the laboratory they keep next to their grow house.  But somehow Corzine’s corner of Wall Street is never the one that gets “occupied.”  You just can’t put a dollar figure on the value of having that wondrous “D” after your name.  Not even Captain America has such an invulnerable shield.

ABC News, by the way, gets around to mentioning Corzine is a Democrat, with high-profile congressional and gubernatorial careers, four paragraphs down… on page 2 of their story.  His key role as a top Obama contributor, and Obama Administration go-to guy for economic advice, goes completely unmentioned.  Baby steps, fellow journalists!

So, what’s this lawsuit all about?

The lawsuit, filed on behalf of all 38,000 customers, alleges that when MF Global made a series of bad investments — notably in European debt — it began “siphoning funds withdrawn from segregated client accounts” to cover its debts.

“This is a suit by the real victims of MF Global,” said plaintiff’s attorney Mark Baker of the law firm Anderson, Baker & Swanson. “The missing funds were not investments in MF Global, or loans to MF Global, but rather the customer’s own money as collateral to guaranty their contracts. They were not to be used by others – let alone their own broker – to speculate on risky and exotic securities.”

Corzine was at the helm of the firm when it declared Chapter 11 on October 31 , the eighth-largest bankruptcy filing in U.S. history. Regulators initially thought $600 million in customer funds had gone missing, but later upped their estimate to $1.2 billion. Only 60 percent of customer funds could be found.

The risky bets Corzine made with these folks’ money involved buying European bonds.  In other words, Corzine ripped off a bunch of “working Americans” and invested their money in huge, insolvent governments.  He now insists he doesn’t have a clue where a single penny of the missing $1.2 billion might have gone.  Deprived of their looted capital, those Montana farmers face uncertain futures.  If they shut down, jobs will be lost… and the cost of essential goods for all the other “working Americans” will rise, making their lives more difficult.

Meanwhile, Corzine was living large: “According to the February issue of Vanity Fair, Corzine, who reportedly made over $16 million between 2010 and 2011, was shopping for a chateau in France with his wife two weeks before MF Global filed for bankruptcy.”

Jon Corzine is the very avatar of Obamanomics.  His only mistake was implementing it without the protection of elected office – which means, as a member of the private sector, he can get sued over the results.

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Written By

John Hayward began his blogging career as a guest writer at Hot Air under the pen name "Doctor Zero," producing a collection of essays entitled Doctor Zero: Year One. He is a great admirer of free-market thinkers such as Arthur Laffer, Milton Friedman, and Thomas Sowell. He writes both political and cultural commentary, including book and movie reviews. An avid fan of horror and fantasy fiction, he has produced an e-book collection of short horror stories entitled Persistent Dread. John is a former staff writer for Human Events. He is a regular guest on the Rusty Humphries radio show, and has appeared on numerous other local and national radio programs, including G. Gordon Liddy, BattleLine, and Dennis Miller.

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