Corzine Sued for RICO Violation by MF Global Customers

[Owlet]

Jan. 20 (Bloomberg) -- Jon Corzine, MF Global Holdings Ltd.’s former chief executive officer, was sued under U.S. racketeering law by commodity customers alleging he and other executives “unlawfully” took money from their accounts and failed to segregate their money as the law requires.

http://www.businessweek.com/news/2012-01-21/corzine-sued-for-rico-violation-by-mf-global-customers.html

[Demeter]

1. Can they DO that?

I thought RICO was only for the Injustice Dept. to ignore...

[Tansy_Gold]

2. .

[Po_d Mainiac]

3. It can be used in civil cases

What the article doesn't state, is that damage awards can triple.

But, the term is often used early on in a filing, as a scare tactic. It doesn't mean that the presiding judge will allow the arguments to proceed. Defense probably knows more about the merits of a RICO filing than anyone else, and that triple awards thingy is big.

IIRC it also sets the stage for plaintifs to collect for legal fees, AND defense lawyers can end up not getting paid if it's shown that the fees would be covered with ill-gotten-gains. The mail and wire fraud aspects are likely what the plaintifs are hanging their caps on.

[Ruby the Liberal]

5. This I never knew

(add it to the very long list....)

So if the Defense team risks not getting paid, what happens? Do they demand cash upfront? I can't imagine anyone wanting to bite off a piece of this fraud without some kind of payment option promised them.

[Po_d Mainiac]

6. The way it was explained to me

By a former State AG 15 or so years ago, even if the defendant/s pay up front, the fees can be clawed back by the plaintif. There again that was years ago, and the statutes may have been amended. That also may only apply in the case of a criminal action, and not apply if it's a civil suit brought under the RICO clauses.

The initial legislation was meant for targeting organized criminal enterprizes (MFG wood fit that definition <snark&gt and was expanded after the first WTC bombings. Like you said, who wood wanna go through the effort of defending an expensive case au gratis?

The threefold damage award does still stand.

[AnneD]

4. I have taken up knitting again....

where in the hell am I going to find that many skeins of orange to knit his jumpsuit?

[Tansy_Gold]

7. Etsy, where else!

http://www.etsy.com/listing/89503842/european-soft-bright-orange-yarn?ref=sr_gallery_3&sref=&ga_search_query=orange+yarn&ga_view_type=gallery&ga_ship_to=US&ga_search_type=supplies&ga_facet=supplies

[AnneD]

8. Of course...

and I bet they have a pattern for a knit jumpsuit too. Where would I be without you Tansy

[Tansy_Gold]

9. LOL

Well, I'm just trying to promote independent artists as much as possible. You know how that goes!

[sendero]

10. I hope every customer of MFG..

... that was subject to this malfeasance sues also.

Corzine should be in jail but bankrupting him would at least be something. These white-collar thieves have to be reined in.