On Wednesday, two National Futures Association directors will present a five-page motion to ban former MF Global CEO Jon Corzine from the futures industry.
If it is approved, a hearing will be held to determine if a lifetime ban is warranted. This would also affect Corzine’s plans to start a hedge fund.
John Roe, one of the motion’s authors,?told The New York Post, “He [Corzine] doesn?t need to be near anyone?s money ever again in the futures space, and we want to make sure of it.”
Roe and the other author, James Koutoulas, had been elected as NFA directors last month. They assisted in recovering money for MF Global; which came from the company’s improper use of $1.6 billion of their funds.?
The duo’s proposal to the board asks for the NFA to organize a panel and review whether Corzine?had violated agency rules by failing to supervise MF employees and maintain organized records.
Along with a ban, Corzine could see fines as high as $250,000 for each of the potential nine rule violations listed in the ban, per NFA rules or a total of almost?$2.5 million, He could also see limitations not only to trade futures for any fund with external investors but also be affected when raising money from pension funds and large funds.