Our interpretation of Judge Glenn’s decision on Sapere’s Motion

#PFGBest Customers

Are you a customer of PFGBest? The CCC is working with regulators and monitoring the court on behalf of PFG customers. At this stage, we are advising customers to gather their statements and prepare for a claims or account transfer process.

Stay tuned to our website for more information.

I've seen a lot of panic today from customers who are very concerned with regards to Judge Glenn denying Sapere's motion asking for discovery and priority over MF Global Holdings assets. Granted, everyone is on edge in light of this week's see-saw-like news where we were told 1.2B in cash mystically "vaporized" by the WSJ, then the NY Times refuted it saying most of the money has been traced, then today that customers don't have priority over Holding company assets yet.

The key word is "yet."

While the CCC filed a letter of support for Sapere's motion, our legal team felt that while the outcome of the motion if granted would obviously be a positive one, their filing was premature at this stage in the case. We actually filed a brief prior to their filing that is still awaiting hearing, but makes sound arguments for the priority of funds that can be traced to MFGH or any other entities. Please give it a read, as we think it has a good chance of success, and it also contains signed letters of support from two FCM's: Dorman and PFG. CCC Brief in Response to Trustee Distribution Memorandum

So please, take a breathe and rest assured that the CCC has been very busy behind the scenes lately and has some big things coming soon.

Yours truly,
James

#MFGlobal Customers

Are you a customer of MF Global? The CCC formally represents more than 200 clients in the bankruptcy process of MF Global on a pro bono basis, and informally represents thousands more in the public domain.

Get the latest news on #MFGlboal.

About James Koutoulas 209 Articles
Co-Founder and lead attorney of the CCC, CEO of Typhon Capital Management and Typhon Securities.

3 Comments

  1. Is this the first time in US history that a bankruptcy trustee (Freeh) pleads the Fifth for a corporate person by invoking “attorney-client privilege”? If Freeh is intentionally delaying the investigation, shouldn’t the bankruptcy cases be delayed as well? Alternatively, shouldn’t Freeh be removed as trustee for demonstrating his inability to comply with his fiduciary duties as trustee, since his invoking of such privilege shows his partiality, rather than being impartial toward MF’s beneficiaries? Furthermore, by entering Chapter 11, doesn’t MF Global cease to have corporate personhood?

  2. Thanks James!

    If there was collusion between representatives of the SEC/SIPC/CFTC to avoid placing MF Global under Subchapter IV of Chapter 7 in order to favor JP Morgan and prejudice all commodity customers, then everyone should close their futures accounts immediately. It will mean that any futures commission merchant can get away with embezzlement of customers’ property, and the FCM’s counterparties can get away with money laundering.

    MF Global was the eighth largest futures commission merchant by customers’ funds, just beneath Merrill Lynch. The Futures Industry Association seems to be torpid regarding this crucial case. This will be the case that will determine whether the futures industry will continue to exist, or will cease to exist after institutionalizing state-sanctioned embezzlements.

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