MF Global Trustee Freeh Sues Corzine
NEW YORK ( TheDeal) -- Less than three weeks after issuing a report blaming former CEO Jon Corzine for the collapse of MF Global Holdings Ltd., the company's Chapter 11 trustee has sued the executive and two other board members.
In a Monday, April 22, complaint, Chapter 11 trustee Louis Freeh of Pepper Hamilton LLP faulted Corzine, chief operating officer Bradley Abelow and former chief financial officer Henri Steenkamp for the brokerage firm's demise.
Freeh alleged the defendants had "breached their fiduciary duties of care, loyalty and oversight over the company and failed to act in good faith."
The trustee further alleged that when the defendants were at the helm of MF Global Holdings, they "changed the company's business plan without addressing existing systemic weaknesses that ultimately caused the plan to fail.""As part of the new business plan, and in violation of his fiduciary duties to MF Global as the chief executive officer of
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