MF Global Holdings To Pay $1.212 Billion And $100 Million Penalty For Misuse Of Customer Funds

A federal court on Wednesday ordered MF Global Holdings Ltd. to pay $1.212 billion in restitution to its former customers for the misuse of customer funds by its subsidiary MF Global Inc. A judge for the U.S. District Court for the Southern District of New York also imposed a $100 million penalty on MF Global Holdings. The Commodities Futures Trading Commission claimed MF Global Holdings was responsible for MF Global Inc.'s unlawful use of segregated customer funds. MF Global Holdings announced its filing for bankruptcy in 2011. A substantial portion of the obligation has already been paid according to a CFTC press release.