A former MF Global executive is contradicting testimony from Jon Corzine, saying the former New Jersey governor ordered the transfer of $200 million out of a customer account days before the firm collapsed, according to an email obtained by congressional investigators.
Edith O�Brien, the former assistant treasurer, says Corzine ordered the money shifted to one of the firm�s bank accounts overseas, according to a memo that cited the email.
A House Financial Services subcommittee released the memo Friday in advance of a hearing Wednesday. O�Brien is scheduled to testify Wednesday.
A representative for Corzine didn�t immediately return a telephone call seeking comment.
Corzine has testified he didn�t know anything about customer funds being transferred just before the company�s collapse.
In December, Corzine told the panel: �I did not instruct anyone to lend customer funds to MF Global or any of its affiliates.� Corzine also said he didn�t know about �the use of customer funds on any loan or transfer.�
Former federal prosecutor Robert Mintz says it�s hard to say if Corzine is in real trouble.
�Depending upon how someone answers questions, it can be very difficult to prove perjury,� he said.
Mintz says prosecutors will more likely focus on any criminal actions that could be connected to the disappearance of the money.
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While having friends in high places helps, there are limits to impunity. Even if Obama doesn’t prosecute, absent a pardon there’s a good chance they’ll be a Republican prosecutor in charge next year (and if the Republicans are clever Corzine will be the face of Wall Street in the campaign) – and the many small farmers he ripped off are all in “red” states that can charge him under state laws.