Jan 6 MF Global's bankruptcy
trustee, Louis Freeh, has refused to turn over some documents to
the Commodity Futures Trading Commission (CFTC), which is
investigating what happened to an estimated $1.2 billion in
missing customer funds, the Wall Street Journal said.
Freeh, a former director of the Federal Bureau of
Investigation and who represents MF Global's parent company, has
asserted attorney-client privilege in deciding not to release
certain documents to the CFTC, according to his office and
people familiar with the matter, the Journal said.
The dispute is complicating efforts to learn how the firm
lost the customer funds and to return the money to its owners
and could slow the investigation, the Journal said, citing
people familiar with the investigation.
A spokesman for Freeh's office told Reuters that the
trustee's team was cooperating with regulators, law enforcement
and Congressional committees and is not aware "that our initial
desire to preserve the attorney-client privilege has hampered
their respective investigations.
"To the extent that the authorities express concerns to us
that the effort to preserve the attorney-client privilege is
hampering their investigations, we of course would be willing to
discuss the issue with them and be inclined to waive privilege,"
the spokesman said.
A spokesman for the CFTC declined to comment the Journal on
The CFTC could not be reached by Reuters for comment after
U.S. business hours.
Separately, the New York Times said CFTC is scrutinizing
whether CME Group's efforts to verify the safety of
customer funds were sufficient. The newspaper cited people
briefed on the matter.
CME, which also served as MF Global's primary regulator is
the operator of the main exchange where the commodities
brokerage firm conducted business.
CME could not be reached for comment after U.S. business