A federal official said Tuesday that MF Global—the securities firm founded by former New Jersey governor Jon Corzine that filed for bankruptcy Monday—had used clients’ money while their financial troubles grew. Government rules insist client money and company money be kept separate by securities firms. Whether or not MF Global will face criminal charges for this alleged misuse of funds, however, is unclear. MF Global filed for bankruptcy Monday, the first firm to fail due to the spiraling European debt crisis.
