MF Global trustee Freeh seeks additional $1 million in fees

Tue Aug 6, 2013 10:23am EDT

Former FBI director Louis Freeh (R) takes questions regarding his report on child abuse allegations against former Penn State assistant coach Jerry Sandusky during a news conference in Philadelphia, Pennsylvania July 12, 2012. REUTERS/Tim Shaffer

Former FBI director Louis Freeh (R) takes questions regarding his report on child abuse allegations against former Penn State assistant coach Jerry Sandusky during a news conference in Philadelphia, Pennsylvania July 12, 2012.

Credit: Reuters/Tim Shaffer

(Reuters) - Former FBI chief Louis Freeh, the state-appointed trustee in the MF Global bankruptcy case, has asked to be paid another $1 million for winding down the failed brokerage.

Freeh already asked for nearly $2 million in fees, but agreed to a slight reduction after the Department of Justice criticized him and his law firm for vague time records.

The trustee listed the negotiation with MF Global's UK subsidiary that resulted in the return of $30 million to the company among the services rendered by him and his team.

Freeh, who also cited his work on securing $21 million in tax refunds for MF Global, said in a court application filed on Monday that he could have asked for about $4 million in fees.

Regulators found that MF Global, run by former New Jersey Governor and Goldman Sachs CEO Jon Corzine, had misappropriated money in client accounts. Customers are expected to recover all their money.

MF Global is liquidating after filing for bankruptcy in 2011. Its creditor payback plan was approved in April in the U.S. Bankruptcy Court in Manhattan.

The case is In re: MF Global Holdings Ltd, U.S. Bankruptcy Court, Southern District of New York, No. 11-15059.

(Reporting by Tanya Agrawal in Bangalore; Editing by Joyjeet Das)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
chuck1731 wrote:
Why should Freeh get $1 million extra. Did he really do $4 million worth of work? How about paying the employees who’s lives were destroyed by Corzine the money owed to them?

Aug 07, 2013 9:25am EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.