NEW YORK ( TheStreet) -- The trustee in charge of liquidating MF Global's ( MFGLQ.PK) brokerage unit said the shortfall in customer funds may be more than $1.2 billion, double the $600 million that was originally estimated by the Commodity Futures Trading Commission.

"At present, the Trustee believes that even if he recovers everything that is at US depositories, the apparent shortfall in what MF Global management should have segregated at US depositories may be as much as $1.2 billion or more," trustee James Giddens said in a statement, adding that the number could change.

The jump in estimate comes as anger mounts among clients who are struggling to recover their money from the bankruptcy process, as investigators look into the matter of the missing money.

Meanwhile, a group of customers are filing a motion against JPMorgan Chase ( JPM), arguing that the bank is using cheap tactics to side-step them in the bankruptcy recovery process.

The trustee on Monday said that he is distributing virtually all property under his control. His current plan is to transfer 60% of customer segregated accounts, which would take about $1.3 billion to $1.6 billion to implement- virtually all assets under control.

--Written by Shanthi Bharatwaj in New York

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