Former Goldman Sachs chief and Governor of New Jersey Jon Corzine is trying hard to act like an innocent victim in the ongoing MF Global fraud scandal. In a recent hearing on Oct. 23, lawyers for the failed CEO attempted to get all inquiries and charges thrown out of court by intimating that he must be innocent of fraud since he lost money too when he bought company shares just a few months before the bankruptcy.
Indeed, the investors' claim that Mr. Corzine participated in a fraud "makes no sense" because, just two months before the company collapsed, he bought over 50,000 shares of MF Global stock on the open market. His lawyers argue Mr. Corzine's stock purchase belies the investors' claim that he sought to defraud them.
As lawyers for the banks that underwrote MF Global's securities noted, trading firms can go under without fraud.
"Companies sometimes fail because of unsuccessful business strategies," said lawyers for the underwriters. "However regrettable that reality, courts long have taught that such failures alone do not give rise to claims under the federal securities laws."
To date, neither Mr. Corzine nor others at MF Global have been charged with a crime. - Wall Street Journal via Zerohedge
Indeed, it is unlikely that Corzine will ever be charged with any wrongdoing, especially in lieu of the fact that the failed financier is one of President Obama's chief campaign contributors, and has helped the administration numerous times as an adviser and fundraiser.