Edith O’Brien was the assistant Treasurer at MF Global, and she’s talking to the Feds, according to the WSJ.That means, somewhere, MF Global higher-ups (like, Jon Corzine) may be shaking in their boots.
O’Brien is considered a star witness in this case, one who had full knowledge of how the firm’s funds were managed. She testifies today before the House Financial Services Committee at 2:00 pm.
That said, we won’t find out what she (through her lawyers) told Justice Department officials during today’s proceedings. O’Brien has a prepared statement, and she’s sticking to it. She’ll also invoke her Constitutional right to avoid incriminating herself and decline to answer some questions.
Officials have been working on O’Brien for a while.
In recent months, lawyers for Ms. O’Brien offered a so-called proffer at a meeting in New York as part of an effort to negotiate immunity from prosecution in exchange for her cooperation with federal investigators, one of the people said.
In a proffer, a person under investigation tells the government how he or she would testify in exchange for immunity, nonprosecution or leniency at sentencing. Normally, if the talks break down the government can’t use information it didn’t already know in a subsequent prosecution.
So maybe that makes today’s show a little less exciting, but it certainly builds anticipation for the coming weeks.
Eventually, of course, we will find out what she said.
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