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Forum Post: MF Global-A Gigantic Heist

Posted 6 years ago on May 26, 2012, 3:55 p.m. EST by trashyharry (3082) from Waterville, NY
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Why has nobody been charged with the looting of the accounts of customers at MF Global?The crime must be 100% solvable because these accounts were all segregated accounts.The accounts were not mingled together with each other,nor were they mingled together with funds belonging to the firm.Someone,using a password or passwords would have had to issue instructions to a computer to drain the accounts.Even using a computer,it would have taken hours at least to enter and execute the program that was used to do the heist.Who had the passwords?Who was logged in with a company user ID during the time when the heist occurred?Obviously more than one person did this crime-the person who authorized it and the people who actually did the work on MF's computers-or on computers at another location using company passwords,confidential source codes,and other stored information that is only available to very few people.Computer user logs from MF would certainly reveal all of this information,yet John Corzine has not been arrested.Mr.Corzine has made no public statements except vague denials that a crime has taken place and incoherent explanations that he"doesn't know what happened."Maybe Mr.Corzine has information that his old employer Goldman Sachs feels uncomfortable about and they have promised him protection if he keeps quiet?I guess they can protect anybody from being held accountable for even the most brazen crimes because-they own the government.GL/TRASH



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[-] 2 points by bensdad (8977) 6 years ago

A competent programmer [ with passwords ] could do this alone in a few minutes
A very good programmer could write a program that hid the tracks to make it impossible to discover the culprit
My guess is that normal transaction tracking would be inescapable by any normal financial employee - even with passwords
No one would have authority to bypass the audit trails
Corzine may have been incompetent - but he's not an idiot - he would not be able to do this

watch War Games It was a programmer.

[-] 2 points by trashyharry (3082) from Waterville, NY 6 years ago

TYVM for the links you posted,shadz-some I have read & some I haven't.At this point there is so much money missing,even a general estimate is impossible-TH

[-] 3 points by shadz66 (19985) 6 years ago

@ 'th' : You're welcome & I further recommend the following doc. for an insight into someone (Brooksley Born) who saw the whole 2008 'Financial Crime Mega-Mess' coming, tried to act and was sidelined :

I strongly recommend this documentary.

radix omnium malorum est cupiditas ...

[-] 1 points by shadz66 (19985) 6 years ago

MF Global is the co-epitome of "Fraud As Business Model" along with 'The Mad(e)off Scandal' in the annals of Modern 'High Finance Kaputalism' !!

Remember 'The Savings & Loan' Debacle ; 'Long & Term Capital Management' ; Enron ; Worldcom & now the 'FukBuk Fiasco' etc. ? Where and when we can see that Avarice, Extraction, Fraud, Larceny and Usury ... is the 'business model' of choice for The Parasitic Psychopaths !!!

Further to your post above, I also append some relevant and hopefully useful links :

  • "MODERN MONEY MECHANICS", A Workbook on Bank Reserves and Deposit Expansion ; from The Federal Reserve Bank of Chicago (Insight into the mechanics of 'Fractional Reserve Banking') : http://www.rayservers.com/images/ModernMoneyMechanics.pdf .

  • "Bank of America : Too Crooked to Fail" ; http://www.rollingstone.com/politics/news/bank-of-america-too-crooked-to-fail-20120314 ? (Article) The bank has defrauded everyone from investors and insurers to homeowners and the unemployed. So why does the government keep bailing it out ? By Matt Taibbi.

  • "Formula For Fraud" (Audio) with Prof. William K. Black - from the first Italian economic Summit on Modern Money Theory in Rimini, Italy. How to become a billionaire - the four necessary ingredients in the recipe for fraud ; the three sure consequences of banking control fraud ; the total gutting of the underwriting process ; Gresham's Law ; The Business Roundtable ; hyperinflation of a bubble." : http://www.kpfa.org/archive/id/79331 & re. the excellent and inestimable Professor William K. Black : ( http://en.wikipedia.org/wiki/William_K._Black and http://law.umkc.edu/faculty-staff/people/black-william.asp ).

  • "The Secret History of the Global Financial Collapse" (Video) ; September 2008 launched an extraordinary chain of events: General Motors, the world’s largest company, went bust. Washington Mutual became the world’s largest bank failure. Lehman Brothers became the world’s largest bankruptcy ever – The damage quickly spread around the world, shattering global confidence in the fundamental structures of the international economy : http://topdocumentaryfilms.com/meltdown/ .

  • "The Fall of Lehman Brothers" (Video) : On September 15, 2008, the firm filed for Chapter 11 bankruptcy protection following the massive exodus of most of its clients, drastic losses in its stock, and devaluation of its assets by credit rating agencies. The filing marked the largest bankruptcy in U.S. history. The following day, the British bank Barclays announced its agreement to purchase, subject to regulatory approval, Lehman’s North American investment-banking and trading divisions along with its New York headquarters building. On September 20, 2008, a revised version of that agreement was approved by Judge James Peck. : http://topdocumentaryfilms.com/fall-lehman-brothers/ .

Please also try to refer to :

e tenebris lux ...

[-] 0 points by penguento (362) 6 years ago

If I were betting, I'd bet that some people will go to prison over this one. These investigations take a long time because of the complexity of the records systems involved, but they'll be charging some folks. The violations were too clear-cut.

[-] 1 points by shadz66 (19985) 6 years ago

But why is Jon Corzine still walking free ? + A recommended link :

fiat lux et fiat justitia ...

[-] 2 points by penguento (362) 6 years ago

It takes time. First you've got to get search warants, then you' ve got to figure out where the money went, then you've got to figure out who did what and who gave what orders, then you've got to show an actual crime was committed, then you've got to show probable cause that a particular person did it, then you've got to persuade the DA or US attorney to file a criminal information or you've got to take it to a grand jury and get an indictment, and you've got to wrap the whole thing up nice and tight so you can get a conviction; all the while being careful you don't screw something up that will get your evidence or your case tossed out.

This requires slowly and carefully going through mountains of financial record and emails, interviewing lots of people and working very carefully with the prosecutor and the judge to make sure you've got the right warrants,etc., and very carefully building the whole thing. None of this happens quickly, nor should it . Corzine and the others aren't going anywhere. Better to go nice and slow and get it right than rush and screw it up and watch them walk on a technicality like having your evidence thrown out because you didn't get all the proper warrants or you didn't maintain a proper chain of custody for the evidence.