Rep Cmte Financial Services
Subcommittee Votes to Subpoena Witness for MF Global Hearing
Washington, Mar 21 -
As part of its ongoing investigation into the collapse of MF Global and missing customer funds, the Financial Services Subcommittee on Oversight and Investigations voted today to subpoena Edith O’Brien, the assistant treasurer at the time the company declared bankruptcy.
O’Brien is directed to testify before the Subcommittee on Wednesday, March 28 at 2 p.m. during a hearing to examine MF Global’s final week of operations before the firm filed for bankruptcy on Oct.31, 2011. O’Brien had been invited by the Subcommittee to testify voluntarily but declined.
The trustee administering MF Global’s bankruptcy has reported that as much as $1.6 billion in funds may be missing from segregated customer accounts.
O’Brien worked in the Chicago office of MF Global, which was responsible for ensuring the company properly handled customer accounts.
Rep. Randy Neugebauer, the Subcommittee’s chairman, said, “After reviewing thousands of documents and interviewing former MF Global executives and regulators as part of our investigation, the Subcommittee has concluded that Ms. O’Brien has unique, personal knowledge regarding how and why customer funds went missing. We owe it to the thousands of customers of MF Global – the ranchers, farmers and investors who lost money – to get to the bottom of how this could have happened.”
The March 28 hearing will be the Subcommittee’s third examining the downfall of MF Global. Since early November, the Subcommittee has interviewed MF Global senior management, regulators and executives at firms that had business relationships with MF Global, as well as reviewed more than 100,000 documents and electronic communications provided voluntarily to the Subcommittee by the company, the bankruptcy trustees and regulators.