Friday, December 23, 2011
Corzine says he never authorized 'misuse' of money
By MARCY GORDON and DANIEL WAGNERWASHINGTON -- - Questioned by senators he once served with, Jon Corzine told a panel Tuesday that he never told anyone to "misuse" customer money that vanished when MF Global collapsed this fall. An estimated $1.2 billion in client funds are missing. Senators demanded that Corzine and two other executives from the securities firm explain who authorized the transfer of money in the days before the firm became the eighth-largest bankruptcy in U.S. history.
"I never gave any instruction to anyone at MF Global to misuse customer funds," Corzine testified at a hearing of the Senate Agriculture Committee.
Corzine, a former Democratic New Jersey senator and governor, resigned as CEO of the securities firm last month.Bradley Abelow, the firm's president and chief operating officer, and Henri Steenkamp, the chief financial officer, also tried at the hearing to distance themselves from any decision to transfer customers' money.
Brokers are required to keep client money separate from company funds.
All three witnesses said they don't know where the money is. Yet their phrasing varied in subtle ways that could have legal distinctions.
Corzine said he did not direct anyone to "misuse" clients' money.
Abelow said he does not recall "any conversation about customer funds being used for anything other than their intended purpose."
Steenkamp's stance was more sweeping. He said he did not "authorize, approve or know of any transfers of customer funds" out of their accounts.
Depending on the circumstances, transferring money from customers' accounts could violate securities laws and, in some cases, could amount to a crime. Federal authorities have begun criminal investigations. And regulators are looking into whether the firm broke securities rules.
"Funds don't simply disappear," said Kansas Sen. Pat Roberts, the committee's top Republican. "Someone took action, whether legal or illegal, to move that money. And the effect of that decision is being felt across the countryside."
Roberts said MF Global violated "a sacred rule of the futures industry," under which customers' money remains segregated from the firm's.
"You don't break the glass in regards to segregated funds," Roberts said.
As the senators drilled into who might have authorized the transfer of funds, Corzine pointed to the role of the firm's treasury operations department.
"The people who headed that were probably closest to the scene of the action," he said. Roberts noted that the department ultimately reported to Abelow.
The committee is continuing its investigation of MF Global.
Chairwoman Debbie Stabenow, D-Mich., said staffers are interviewing MF Global employees, "asking for an accounting of checks and balances - who was in charge."
Added Sen. Mike Johanns, R-Neb.: "Somebody in this organization had to have the ability to say, `Light's green, take the money."' Corzine and Steenkamp said that given what's now known, they wouldn't have signed the firm's last quarterly financial statement attesting that its internal financial controls were adequate.
Under a 2002 anti-corporate-fraud law that Corzine co-wrote as a U.S. senator, the CEO and chief financial officer of public companies must personally certify the accuracy of their company's financial statements. It can be a violation of the law for executives to sign a false statement.
MF Global collapsed after a disastrous bet on European debt spooked its investors, customers and trading partners.
The three executives say that they didn't become aware of the shortfall until hours before the firm filed for bankruptcy protection on Oct. 31.
Tuesday's hearing included an added element of intrigue: Corzine was pressed by some of the senators he served with from 2001 through 2005.
The Senate panel is one of three congressional committees to have issued subpoenas to compel Corzine's testimony on the issue.
It marked the first time a former senator has been subpoenaed by his former peers in more than 100 years, according to the Senate historian's office.
Many lawmakers have heard from farmers, ranchers and small business owners in their states who are missing money that was deposited with the firm. Agricultural businesses use brokerage firms like MF Global to help reduce their risks in an industry vulnerable to swings in oil, corn and other commodity prices.
Corzine told lawmakers that he never intended to authorize the transfer of funds from customer accounts. He said he doesn't believe "it would be possible" for anyone to misinterpret anything he said as authorizing the misuse of customer funds.
Corzine, Steenkamp and Abelow have been sued in class-action complaints on behalf of MF Global shareholders. The lawsuits accuse the executives of making false and misleading statements about MF Global's financial strength and cash balances.
MF Global didn't list the European debt on its balance sheet for all to see. Instead, those holdings were shifted to the company's "off-balance sheet," deep in its financial statements. Some separate filings with regulators excluded the European debt entirely.
A lawyer for the trustee overseeing the liquidation of MF Global's brokerage operations said in court Friday that the trustee's staff has discovered some "suspicious" trades in MF Global customer accounts that were made in the last days before the firm failed. The lawyer didn't provide details.
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(Copyright ©2011 by The Associated Press. All Rights Reserved.) Get more Business »jon corzine, business
Muslims protest at NJ Lowe's over pulled ad
Eyewitness NewsPATERSON -- Members of New Jersey's large Muslim community protested outside a Lowe's store in Paterson on Friday. They gathered to criticize the company's decision to pull ads from a reality TV show about American Muslims.
About two dozen people gathered in the parking lot off a busy highway and held signs that said "Don't Appease Hate Mongers" and "Discrimination is Low, Lowe's."
Aref Assaf, the head of the Paterson-based American Arab Forum, says the protest is meant to show that most Americans respect diversity and get along with one another. He says Lowe's is caving in to extremist elements that don't represent the views of most Americans.Mooresville, N.C.-based Lowe's has stood by its decision to pull ads from the TLC reality show "All-American Muslim" after complaints from an evangelical group.
A handful of people also showed up to support Lowe's decision.
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(Copyright ©2011 by The Associated Press. All Rights Reserved.) Get more New Jersey News »new jersey, paterson, new jersey news
Homeless beating victim speaks out
The victim is a homeless man, and there has been an outpouring of support for him.
David Ivins has a warm bed, food and clothing in the heart of Belmar.
It's a drastic change from the makeshift tent he called home in the middle of a wooded area."I was sitting there having a beer and they ran and jumped on me," Ivins said.
From his donated room at the Belmar Inn, David Ivins told Eyewitness News he doesn't remember much about that afternoon.
That day, two young men decided to punch, kick and torment the homeless man living in the wooded area, believing it was so funny they put it up on YouTube for the world to see.
At one point on the video they gave him an apology, followed by a knee to the gut.
"I'm trying to relax. My let got a cramp in it," Ivins said.
As for what he thinks about his two young attackers, "Not much."
Police quickly arrested 20-year-old Taylor Giresie and a 17-year-old minor because the video is crystal clear.
The images disgusted Giresie's long time neighbors.
"He's been in and out of foster homes. I'm not saying what he did was right. He's had a really screwed up family life. His father died last week. He was a total alcoholic," said Giresie's neighbor, Bobby.
Mayor Matthew Doherty says he's seen an incredible outpouring of support for the 50-year-old victim from the residents of Wall Township to countless calls from across the country.
"I have a coat and gloves," Ivins said.
"I can't tell you how many messages I got by text and Facebook about this. Everyone wants to do something for this man," Mayor Doherty said.
Information on how you can help the victim:
The Wall Township Police Department has coordinated efforts with Wall Helps Its People (WHIP) to set up a donation fund for the assault victim. Anyone interested in making a monetary donation can mail it to the following address: WHIP P.O.Box 1214, Wall, NJ 07719.
WHIP will not be accepting clothing or food donations on Mr. Ivins' behalf. Monies received will be used to provide Mr. Ivins with food, clothing, shelter and other necessities that he may need. Please indicate on the memo portion of your check "David Ivins" or include a note indicating where you would like your donation to be directed. Any clothing or food products for the victim can be dropped at the Belmar Police Department.
For other information please visit www.wallpolice.org.
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(Copyright ©2011 WABC-TV/DT. All Rights Reserved.) Get more New Jersey News »new jersey, homeless, assault, new jersey news, carolina leid
DYFS worker accused of child endangerment
Eyewitness NewsELIZABETH -- Authorities say an adoption specialist with New Jersey's child welfare agency sent sexually charges messages to a 15-year-old boy that he met through church. Frednel Lambert also worked as a choir director at the church in Newark.
Authorities say the 34-year-old Union Township resident is charged with 3rd Degree Endangering the Welfare of a Child.
Union County Prosecutor Theodore Romankow says the boy's mother contacted the Springfield Police Department in September. The prosecutor says the chats were conducted through Facebook over a two-week period.---
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(Copyright ©2011 by The Associated Press. All Rights Reserved.) Get more New Jersey News »new jersey, elizabeth, newark, new jersey news
Sentencing day in 2008 NJ triple murder
Eyewitness NewsHACKENSACK -- A New York man who admitted to killing three members of a New Jersey family in their home in 2008 is expected to be sentenced Wednesday.
Kang-Hyuk Choi is facing 64 years in prison for the killing of his 27-year-old friend Han-Il "Sean" Kim.
Police say Choi stabbed Kim then waited hours in Kim's room before killing Kim's mother and uncle.
Choi, of Valley Stream, N.Y., has been incarcerated since his arrest in California two days after the slayings in May 2008.Choi admitted to killing Kim in a dispute over $30,000, then stabbing to death Kim's mother, Yoo Bok Kim, and Kim's 72-year-old uncle, Doo Soo Seo.
The bodies were found in the family's home in a quiet Tenafly neighborhood.
Choi is scheduled to be sentenced Wednesday in Hackensack.
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Fire burns homes in New Brunswick
Fire burns at least two homes in New Brunswick, New Jersey.
Marjie Mohtashemi, Eyewitness NewsNEW BRUNSWICK (WABC) -- A raging fire consumed three homes in New Jersey Friday afternoon. Firefighters spent hours battling the flames in downtown New Brunswick.
The fire broke out at a house on Somerset Street, then spread to two adjoining houses.
One of them was reportedly abandoned.
There are no reports of any injuries.
CLICK HERE TO SEE PICTURES FROM THE SCENE
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