MF Global Inc. will finally return 100% of the funds of its former customers beginning April 4.
This morning an announcement was made regarding this distribution by James Giddens, Trustee for the Securities Investor Protection Trustee Act Liquidation of MFGI. According to Mr. Giddens, "When MF Global failed more than two years ago, few thought a way could be found to make customers whole."
When this distribution is made, more than US $6.7 Billion will have been returned to over 26,000 customers of the failed combined broker dealer and futures commission merchant. It is expected that the distribution will take "several weeks."
Numerous private legal actions and a Commodity Futures Trading Commission enforcement action (see "CFTC Files Long Awaited Enforcement Action related to MF Global Collapse" at http://www.garydewaalandassociates.com/?p=307) are still outstanding relating to the demise of MF Global in October 2011. Just last week the Plan Administrator for MF Global Holdings Ltd. sued Pricewaterhouse Coopers LLP alleging that its “malpractice and negligence” caused MF Global Holdings to sustain more than US $1 Billion in damages in connection with its investment in certain European sovereign debt instruments before its demise (see: http://www.garydewaalandassociates.com/?p=2252).
For more information: see
"Trustee Announces 100 Percent Customer Distribution" at:
CFTC Press Announcement:
The information contained in this article is not legal advice. For legal advice, please consult with your attorney. The information in this article is derived from sources believed to be reliable as of April 3, 2014, but no representation or warranty is made regarding the accuracy of any statement. To ensure compliance with requirements imposed by U.S. Treasury Regulations, Gary DeWaal and Associates LLC informs you that any U.S. tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Gary DeWaal and Associates may represent one or more entities mentioned in this article.
Gary DeWaal is currently Special Counsel with Katten Muchin Rosenman LLP in its New York office.
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