Money moved out of client accounts after audit at Corzine firm?

NY Times:
MF Global, the commodities and derivatives brokerage firm run by Jon S. Corzine, appeared to move some money out of client accounts in its brokerage unit after an audit by the CME Group was completed early last week, a violation of federal rules, the exchange said in a statement on Wednesday.
The disclosure by CME comes as regulators continue to search for hundreds of millions of dollars still missing from MF Global’s brokerage accounts. It may also fuel suspicions that the firm moved the money in its final days, when it faced mounting demands to produce additional capital to shore up its trades.
CME completed an audit of MF Global’s books around Monday or Tuesday, certifying that the brokerage firm was in compliance with rules governing segregated customer accounts. That meant that money in customers’ accounts was adequately separated from each account and from MF Global’s own money.
 But it now appears that the firm transferred money out of those accounts “in a manner that may have been designed to avoid detection,” a move that MF Global did not disclose to CME or to regulators until early Monday morning, shortly before the firm filed for bankruptcy.
...
Apparently $633 million is still not accounted for.  I think they should be able to trace the funds pretty quickly.  It is really hard to hide this kind of transfer in a regulated brokerage business.   Corzine and his CFO should come forward and say what happened, but their lawyers maybe  telling them that that is a bad idea.  If they ever plan to be in the business again they will have no choice but to talk.  Corcine is the former Democrat Governor of New Jersey.
 

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