Officials at the Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC) may soon have to explain in federal court why they have been stalling their response to a document request from anti-government corruption non-profit group.
Judicial Watch announced today that on July 18 it filed a Freedom of Information Act lawsuit against the SEC and CFTC following failure by both agencies to respond as required under federal law to the group's FOIA for documents related to the $1.6 billion lost by MF Global while it was headed by former New Jersey senator and governor Jon Corzine.
|‘The American people deserve to know the truth about what FSOC officials knew about the epic failure of MF Global and when they knew it. - Tom Fitton, Judicial Watch’|
The suit follows Judicial Watch's April 24, 2012, FOIA request for documents related to an Oct. 31, 2011, meeting of the U.S. Treasury Department Financial Stability Oversight Council (FSOC) at which the MF Global scandal was reportedly discussed. Judicial Watch sued on behalf of Vern McKinley, a former employee of the Board of Governors of the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) and author of "Financing Failure: A Century of Bailouts."
Judicial Watch said the CFTC acknowledged receiving the group's FOIA on April 25, 2012, but failed to provide a final reply by the statuatory deadline of May 23, 2012. Similarly, the SEC told Judicial Watch it received the FOIA on April 25, 2012, but did not provide a final reponse by the mandatory deadline date.
The MF Global scandal made headlines last year after revelations that the firm's bankruptcy was caused by its alleged theft of $1.6 billion in customer funds in an attempt to cover up losses and lies to bondholders about those losses.
Corzine, who was a Wall Street whiz before taking up politics, resigned from MF Global in disgrace, then later claimed before a Senate panel that included many of his former senatorial colleagues that he had no idea what happened to the $1.6 billion.
"The FSOC is yet another expensive bureaucratic boondoggle that has failed to provide the financial stability and oversight promised by its congressional mandate. The American people deserve to know the truth about what FSOC officials knew about the epic failure of MF Global and when they knew it. But once again, the Obama administration refuses to provide basic information related to its 'oversight' of the private sector," stated Judicial Watch President Tom Fitton.
Fitton's recent book on Judicial Watch's work, "The Corruptiuon Chronicles," became a New York Times best-seller last week.