THE BLAME GAME: MF Global May Sue Interactive Brokers, MF COO Abelow Hires A Criminal Lawyer

Jon Corzine banker

Photo: Business Insider

The legal situation in the wake of MF Global’s bankruptcy is getting more complex by the day.Here’s a round-up of all the legal happenings:

  • Fox Business News is reporting that MF Global may sue Interactive Brokers CEO Thomas Peterffy for breaking confidentiality agreements by talking publicly about their failed deal. MF Global lawyers are contemplating writing a warning letter to the brokerage, which may lead to a lawsuit. It has been reported that Interactive Brokers, who was in a last minute deal to buy MF Global, walked away from negotiations after discovering the missing funds in customer segregated accounts.
  • MF Global COO Brad Abelow has hired attorney Gary Naftalis, who is also representing Goldman Sachs board member Rajat Gupta in insider trading allegations related to Raj Rajaratnam’s Galleon Group, sources told Reuters. MF Global has already hired criminal defence attorneys in anticipation of lawsuits. Former CEO Jon Corzine has also retained former Lehman lawyer Andrew Levander.
  • James Koutoulas, a CTA and lawyer working on behalf of MF Global clients, told the NY Post that he intends to file a motion in bankruptcy court today in an attempt to get the frozen money in customers accounts released. 
  • Two class-action lawsuits have been filed against MF Global on behalf of former MF Global clients, from firms in Seattle and Boston.

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