Company Frauds So Terrible You Won’t Believe They Actually Happened

Scott CrokerBusiness22 Mar 2018

MF Global Goes Belly Up

MF. Global executives were forced to pay $64 million back to investors after getting caught for fraudulent practices

Alex Wong/Getty Images

For MF Global Holdings LTD, lying about fraud turned out to be their nail in the coffin. Investors forced the company into bankruptcy after alleging they inflated MF Global’s ability to manage risk, therefore obscuring investment risk. Unable to pay its investors back, MF Global filed for Chapter 11 bankruptcy. Angry investors took action and dragged Jon Corzine and other officials to court.

Ultimately, a $64.5 million cash settlement was reached with Corzine. The settlement helped investors recoup close to $204.4 million in losses following similar settlements with underwriters and company auditor PricewaterhouseCoopers (PwC). Not shockingly, all parties have denied wrongdoing, although being forced into a settlement is usually proof enough for the public these days.