Finance

Feds Sue Corzine Over Misuse of Funds

How the mighty have fallen

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Nearly two years after Jon S. Corzine watched his brokerage firm implode, federal regulators have sued the former MF Global chief executive over the firm's misuse of customer money during its final days, a stinging blow to the onetime titan of Wall Street and Washington.

The Commodity Futures Trading Commission, the federal agency that regulated MF Global, announced civil charges against Mr. Corzine on Thursday, claiming he failed to prevent a lower-level MF Global employee from transferring customer money to banks and clearinghouses. The agency also announced a lawsuit against that employee, Edith O'Brien, who oversaw the transfer of customer money from the firm's Chicago office.