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Public Statements

Letter to Attorney General Holder

U.S. Senators Max Baucus (D-Mont.), Chairman of the Senate Finance Committee, and John Thune (R-S.D.), Chairman of the Senate Republican Policy Committee, today sent a letter to U.S. Attorney General Eric Holder asking that the Department of Justice use all tools available to investigate, and potentially prosecute, MF Global executives who may have made illegal transactions using customer funds.

In their letter, signed by 15 of their colleagues, the Senators write, "If the Department's ongoing investigation uncovers illegal actions, criminal prosecution should be pursued without hesitation. In order to get to the bottom of this, we urge federal agents to use every legal resource available."

Up to $1.2 billion in customer funds have disappeared since MF Global declared bankruptcy on October 31, 2011.

The full letter text is included below.

December 23, 2011

The Honorable Eric Holder

Attorney General
Department of Justice
950 Pennsylvania Ave. NW, Ste. 5111
Washington, DC 20530-0009

Dear Attorney General Holder:

We are writing to emphasize the importance of a comprehensive and exhaustive investigation into the actions of MF Global executives regarding the potentially illegal misappropriation of funds from the segregated accounts of its commodity customers. If the Department's ongoing investigation uncovers illegal actions, criminal prosecution should be pursued without hesitation. In order to get to the bottom of this, we urge federal agents to use every legal resource available.

In the wake of the MF Global bankruptcy proceedings and the disclosure that hundreds of millions of client funds were completely unaccounted for, tens of thousands of farmers, grain elevators and others across the country have faced the real possibility that they would not be made whole on their accounts. This happened despite federal regulations that require collateral equal in value to the customer investments to remain in the customer segregated account at all times. If credible evidence of illegalities is found by the investigation, significant resources should be utilized to prosecute those responsible.

We understand that criminal cases involving complex financial transactions are sometimes difficult to prove beyond a reasonable doubt. However, tens of thousands of American farmers have seen their customer accounts raided by MF Global to the tune of hundreds of millions of dollars. The need for extraordinary effort should not discourage the Department of Justice from pursuing this case to the full extent of the law.

We believe that justice must be brought to this issue to send a message to Wall Street that the trust individual investors place in these firms must always be returned with lawful, conscientious, and honest management of client funds. Thank you for your consideration.

Sincerely,

Max Baucus (D-Mont.)
John Thune (R-S.D.)
Amy Klobuchar (D-Minn.)
John Barrasso (R-Wyo.)
Kent Conrad (D-N.D.)
Scott Brown (R-Mass.)
Sherrod Brown (D-Ohio)
Roy Blunt (R-Mo.)
Ben Nelson (D-Neb.)
Mark Kirk (R-Ill.)
Jon Tester (D-Mont.)
Chuck Grassley (R-Iowa)
Tim Johnson (D-S.D.)
Mike Johanns (R-Neb.)
Dan Coats (R-Ind.)
Johnny Isakson (R-Ga.)
John Hoeven (R-N.D.)


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