US bankruptcy judge Martin Glenn has ruled that the Commodity Customer Coalition cannot question Jon Corzine regarding the $1.2 billion in vaporized/rehypothecated segregated client funds still missing from MFG accounts, because the CCC is not a direct creditor in the case.
Let’s get this straight- the Honorable Judge Glenn has essentially ruled that Mr. Corzine needn’t make a trip back from the Cayman’s, as each of the 10,000 farmers and small investors victimized by Mr. Corzine must personally appear before Judge Glenn and request a deposition of Corzine!?!?!
Meanwhile, Corzine starts his own hedge fund…
Reuters reports that Judge Glenn has rejected the CCC’s request:
NEW YORK (Reuters) – A bankruptcy judge on Tuesday rejected a bid by former MF Global customers to depose the collapsed brokerage’s former chief, Jon Corzine.
In a written ruling in U.S. Bankruptcy Court in Manhattan, Judge Martin Glenn said the Commodity Customer Coalition, which had sought permission to question Corzine and other former MF Global insiders, lacked standing because it is not a direct creditor in the case.
The coalition, a grassroots group led by Chicago-based commodities trader James Koutoulas, bills itself as representing the interests of thousands of traders whose accounts at MF Global were frozen when the company went under.
But the coalition itself is merely a “‘watchdog’ entity with its own independent goals,” hoping to depose Corzine “in furtherance of its own interests” rather than those of the MF Global estate, Glenn said in his decision.
Perhaps the CCC’s James Koutoulas should file an individual motion for each MFG customer victimized?
Koutoulas, reached by phone on Tuesday, dismissed that reasoning as “the most minute technicality imaginable.
“I could have filed 10,000 versions of the motion, one on behalf of each customer we represent,” Koutoulas said, adding that the coalition is considering appealing the decision.