THIS ARTICLE IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL ADVICE. Although the information below is presented in good faith and believed to be correct, it is general in nature and is not intended as legal advice. The information below may not be applicable to or suitable for an individual’s specific circumstances and may require consideration of other matters. We recommend that you consult a lawyer to ensure that our information and your interpretation of it is appropriate for your particular situation.
Many creditors who received payments from MF Global within 90 days of its bankruptcy filing are receiving letters from the Trustee requesting that they contact the Trustee's legal counsel this month to discuss those payments and potentially return all or some of them to the Trustee. This is commonly known as a 'preference attack', an action in which a Trustee of an insolvent company attempts to recover preferential transfers (i.e. payments) from current and former creditors. It is very important that you respond to this letter after discussing it with your legal counsel and mount a defense that the payments you or your company received are not voidable by the Trustee.
As an Introducing Broker, you may have a defense to this action: