Jon Corzine aims to lift legal cost cap
From an enforcement standpoint, Jon Corzine, to the chagrin of some, has fared well.
Not too long ago, many thought that a criminal enforcement action against him personally, for his role in the implosion of MFGlobal, was a sure shot. But it never panned out, as prosecutors apparently couldn't quite find the necessary evidence. He has been targeted personally in civil action by the CFTC, however.
Still, he has racked up some hefty legal bills. "From February through September 2013, defense fees incurred to date exceed $40 million, a figure that has never been adequately explained or justified and which suggests duplication of efforts," lawyers for the bankruptcy administrator argued in court, as noted by the New York Post. Corzine and other executives, unsurprisingly, are seeking to lift the $30 million cap on legal costs, saying that "they are unable to pay for the costs themselves."
While the money would be paid by an insurance company, "it could reduce distributions to other creditors, bankruptcy experts said."
The costs aren't going to disappear anytime soon, not with the CFTC case alive and well and with more than 20 suits outstanding. Forcing the disgraced executive to foot their legal bills might strike some as poetic justice.
- here's the article