MF Global Trustee Did Not Intend To Intimidate When He Sent Intimidating Letter

Author:
Publish date:
Updated on

So James Giddens, who is working diligently to find John Corzine's former clients' money, sent a letter to a few MF Global introducing brokers and other vendors. One-hundred and forty, give or take. The missive includes words and phrases like, "considering whether to seek to recover" and "records suggest" you may have "received more than" you should and "litigation" and "right to insist on payment."

In retrospect, now that it's been brought to his attention by The New York Times, the trustee sheepishly acknowledges that these may seem like arm-twisting tactics. But he assures you that when he wrote all of those things and then offered to go away if you paid him 90% of what he was asking for, bullying you was the furthest thing from his mind.

While acknowledging that “we do want to get the attention of the recipients of these letters,” Mr. Jarrell said that Mr. Giddens did not intend to intimidate anyone. The letters, he said, were sent out of fairness to examine whether anyone “in effect, got 100 cents on the dollar, to the detriment” of MF Global’s creditors.

“These are standard and routine letters sent out to a limited number of sophisticated parties, many of whom have counsel and already have filed claims against the MF Global Inc. estate,” Mr. Jarrell said.

Threatening Letters Sent to 140 MF Global Vendors [DealBook]

Related

MF Global Trustee Was Just Kidding About Paying Out Bonuses To Upper Echelons Of MF Global Management

Last month, it was reported that Louis Freeh, the trustee unwinding the remains of MF Global, would be asking a judge to "approve performance-related payouts for the chief operating officer, finance chief and general counsel at MF Global," as well as twenty other MF Global employees who stayed on after the firm bit the big one. According to one of Freeh's advisers, the bonuses were the only way they could retain the talent necessary to deal with this thing and would actually "quite honestly save a considerable amount of the estate's resources," as losing the team would mean hiring a bunch of consultants who wouldn't have the first clue about where the bodies were buried. Unfortunately for those who went out and blew the money they thought they had coming to them, Freeh wasn't actually serious about paying bonuses. “It was never my intention” to pay out bonus money to executives from the firm, Freeh told members of the Senate Banking Committee at a hearing today. Freeh committed to lawmakers that he would not distribute bonus money to current or former MF Global employees...Freeh, in his prepared remarks, said his team employs 15 non-executives, most of whom were former MF Global employees, along with the senior executives. Freeh said he has considered “a retention program” for them and added that “no formal program was ever created for senior executives, nor was any motion ever filed with the court for approval in connection with any retention program for senior executives.” MF Global Executives Will Not Receive Bonus Money, Trustee Says [Bloomberg]