MF Global Trustee Reveals Suspicious Transfers

Law360, New York (December 9, 2011, 4:11 PM EST) -- A lawyer for the trustee liquidating failed broker-dealer MF Global Inc. said Friday that he had discovered suspicious or unexplained transfers of funds out of accounts that were supposed to be segregated for commodities customers.

James B. Kobak Jr., an attorney for trustee James W. Giddens of Hughes Hubbard & Reed LLP, confirmed for the first time since the company collapsed that some questionable transactions had taken place during its last chaotic days.

Giddens, along with the FBI, regulators and others, is investigating an estimated $1.2...
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