MF Global prober: much to do before money returned

Fri Dec 16, 2011 4:54pm EST
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By Nick Brown

(Reuters) - There is still a lot of work to do before hundreds of millions of dollars can be returned to customers of bankrupt MF Global MFGLQ.PK, the woman leading the Commodity Futures Trading Commission's investigation said on Friday.

CFTC Commissioner Jill Sommers, who heads up one of several probes of a massive shortfall in money that was supposed to be segregated for MF Global customers, said in a statement that "dozens of auditors, investigators and attorneys" are continuing to work on the case.

But "subsequent transfers of those funds are currently being traced, and there is still a lot of work to do" before the CFTC will be in a position to identify the exact source of the shortfall and work to pay back customers, Sommers said.

Most customers have already been paid back about 72 percent

of the value of their accounts.

Sommers' statement came two days after she said the CFTC's investigation was "far enough along the trail" to be able to determine where customer money went.

"We certainly don't want to lead anyone to believe we don't know what happened," Sommers, a Republican commissioner, told Reuters on Wednesday. "We do know, and we see where all the transactions went."

At the time, Sommers said investigators were trying to determine which of the customer transfers were valid and which were illegitimate.   Continued...