REP. Michael Grimm (R., N.Y.) and 17 other Republican members of the House penned a letter to Attorney General Eric Holder calling for a criminal investigation of Jon Corzine, former chairman and chief executive officer of now defunct MF Global, for possible perjury while testifying to Congress.
Corzine's testimony before three congressional committees contradicts evidence revealed in a civil complaint the Commodity Futures Trading Commission (CFTC) filed on June 27.
CFTC filed civil charges asserting that Corzine was responsible for the $1.6 million in funds that went missing from his firm.
"The recorded conversations transcribed in the CFTC civil complaint provide evidence that Mr. Corzine had knowledge of illegal transfers — a fact he denied to Congress. It is outrageous and unacceptable to let this discrepancy go without a formal criminal investigation," Grimm said. "Mr. Corzine has a duty to be honest with the customers from whom he stole money as well as the members of Congress to whom he testified. Any refusal to move forward with an investigation would be a gross injustice."
In his letter, Grimm recalled that Corzine said in written and oral testimony before the House and Senate agriculture committees in December 2011, "I simply do not know where the money is."
In written testimony to the Senate Agriculture Committee, Corzine said, "I was stunned when I was told on ... Oct. 30, 2011, that MF Global could not account for many hundreds of millions of dollars of client money."
Corzine added, "I did not, however, generally involve myself in the mechanics of the clearing and settlement of trades or in the movement of cash and collateral."
The letter to Holder says Corzine's statements are contradicted by the newly released recorded conversations involving Corzine in the days leading up to MF Global's bankruptcy. The letter states that Corzine did know where the money was, according to the CFTC complaint, as it had been transferred to JPMorgan Chase.
"Obviously, he did, in fact, involve himself in the movement of cash and securities," the letter adds. "Finally, there is no way Mr. Corzine could have been 'stunned' to learn of hundreds of millions of dollars missing client funds on Oct. 30, 2011, as he was clearly aware of shortfalls in the segregation account on Oct. 27, 2011."