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Jon Corzine Testifies Before Congress on MF Global Collapse

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    Legal panel weighs in

  • Duration 5:18
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Kelly -- that concession on the docket today a former governor and senator forced to testify about a billion dollar scandal.

Jon Corzine wants chief executive in New Jersey not to mention senator.

Considered a candidate for secretary of the treasury and at the Helm of his investment firm MF global as that company went bankrupt.

Now lawmakers are demanding to know what happened in more than a billion dollars of investors' money which has seemingly.

Disappeared.

So far however no one has been charged with anything.

Here's mr.

Corzine earlier today.

I was stunned when I was told -- -- Sunday October 30 2011.

And MF could not MF global could not.

Count for many hundreds of millions of dollars of client more.

Our remain deeply concerned about the impact that the young reconciled and frozen funds have on MF global customers and others.

I simply do not know where the money is or why the accounts have not been reconciled today.

Oh boy joining me now defense attorney and from the prosecutors are backlash and former prosecutor defense -- Arthur I dollar our guys so.

Don't mean what a mess that the -- -- he goes out there and says.

You can't -- -- I don't know you tell me mark what a defense lawyer advised him to do that -- I aids know no -- again listen one point two billion dollars goes missing.

And he chooses a report that would be acceptable from my five year old what I ask -- your shoes are.

-- -- acceptable the presumption is that he's done something wrong and you add to that.

The allegation that he made numerous misstatements about the strength of the company that on balance sheets.

They're hiding this European debt.

They had these off balance sheet that was buried in financial statements and went to some reporters they didn't have it on the sheets at all so late Sunday and that's -- -- on here just it.

Tell them here's what that is so they they wanted to get people to invest in this month us -- -- really did the money.

And and to do that the allegation is Arthur that that they didn't list.

European debt that they were heavily invested in as on their balance sheets so at European debt you know was crumbling it it has crumbled.

And so it to lure people in the allegation is they sort of said oh forget that European debt no we don't invest in that.

Corzine.

He's going to be in trouble personally if that turns out to be true is he not Arthur because you got -- signed personally as a CEO.

For things like that thanks to a lot Corzine wrote when he was a US senator.

2002 not only not only.

In what you just -- accurate.

What's what's very much more troubling and what in my opinion -- -- much more criminal prosecution -- the likelihood is.

If they took customers' -- who did not sign on -- any of those things.

And used it to keep the business afloat or keep other people's investments afloat.

Would you basically an internal Ponzi scheme or in the world of of the legal profession using escrow -- that aren't.

The lawyers monies to operate my law firm.

That is per say that yeah.

A clearly -- that money because it did don't they just have investors to say here invest my money where their two ends of the business -- -- investors said.

Here invest -- money in another and it.

You say it usually use this money to buy a GE stock that I used his money to pay Meyer mark I -- salary this week because -- short.

There's a huge -- they don't know what we -- one point two billion dollars as.

That likely pretty -- now -- -- bad -- that sounds like a little too close to -- to the Madoff scandal sparked.

-- -- Even though it looks bad -- we can all -- it looks bad that doesn't necessarily mean Jon Corzine -- anything could have been that somebody underneath and somebody we don't know.

Was doing and he genuinely didn't know because he was a CEO and subplots and CEOs are really just the face of the company not so much with their hands and.

That's right that's my defense about defending and -- he's a fancy pants he's out doing important stuff he doesn't know that everyone under him is incompetent -- committing fraud.

The problem there is again not law that the corporate fraud law that he.

You helped create 2002 he's got a sign off that the financials are accurate which means he's got to investigated to determine whether they are accurate or not.

And they weren't alleged.

The other the other problem for him is that there was that there's apparently this this rule that was proposed.

Last year that would have restricted how firms like his handle and invest customers' money.

And he Corzine went and personally.

Up reportedly lobbied against that he didn't want to be restricted how he could.

Invests its customers money and who -- -- a former colleague of his own at former former Goldman Sachs guy and Arthur.

Guess what the rule.

He was never passed any quick final word.

The final word is this is used by the way.

As senator hasn't testified before congress -- former senator finds -- an important matter in a hundred years.

And he's the captain of the ship he's the captain of the Titanic.

He can't say I didn't know when I went to sleep that the guy why put it down within company so we -- -- an iceberg.

He's got to take responsibility -- nobody -- would you advise him not to make that statement parlors.

I can absolutely keep quiet visit gives -- not -- it doesn't get caught ya have -- well well let that be to buy our thanks guys coming up more on an.

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