Consent Order to Require Reparations from MF Global to Victims Now Effective

The CFTC consent Order from a federal court requiring estate funds to be allocated to make final restitution payments to customer claims is now effective after months of unsuccessful appeals.

The consent Order, which was entered on November 8, 2013 by Judge Victor Marrero of the U.S. District Court for the Southern District of New York, required that MF Global begin making final restitution payments after obtaining permission from the bankruptcy court to remedy any shortfall with funds of the MF Global general estate. In addition to full restitution, the consent Order imposed a $100 million civil monetary penalty on MF Global, to be paid after MF Global has fully paid customers and certain other creditors entitled to priority under bankruptcy law.

See: Press Release.Related news: Federal Court Orders MF Global to Pay over $1 Billion in Restitution to Customers (with Lofchie Comment) (November 18, 2013).