States can prosecute Corzine?

Ed Morrissey:

Has Jon Corzine escaped justice after MF Global fleeced customers of more than a billion dollars?  On CNBC, Rick Santelli and James Koutoulas say … maybe not.  If the Obama administration’s Department of Justice won’t prosecute Corzine, who not coincidentally is a big Obama bundler and a former Democratic Governor and Senator from New Jersey, then maybe states where Corzine’s former customers live might be interested in theft on the grandest scale imaginable (via News Alert):

I’m not sure whether this will work or not. If the thefts occur within the federally-regulated trading system, state AGs might not have jurisdiction. On the other hand, New York state AGs have a long history of crackdowns on fraud within the investment community, and it will be difficult to argue that a customer robbed of his retirement money in Arizona or Florida has no recourse to bring Corzine to justice while the DoJ sits on its hands.

The states can clearly prosecute for actions that effected their citizens.  One of my first cases as a lawyer was  a prosecution involving the sale of  municipal bonds of dubious value from another state into Texas.  The case was later upheld by the Texas Court of Criminal Appeals.  I later prosecuted those responsible for defrauding returning POWs out of their back pay on the sale of bonds from a dealership in Fort Lauderdale, Florida to Navy officers in Kingsville, Texas.  We also prosecuted people selling from Texas into other states.  I think there are several statues that could apply to the MF Global situation.  Embezzlement could be one of the potential charges.  It is likely that states probably have better laws to deal with what happened.