A grain trader with MF Global which collapsed in a
spectacular bankruptcy in October, 2011, has been sentenced to five years in
prison for making and illegal and unauthorized trade that resulted in a loss of
$141 million in 2008.
Evan Brent Dooley, 45, pleaded guilty in a Chicago court.
MF Global Holdings lost $6.3
billion on a wrong-way trade on European bonds. It made the trades on its own
behalf, not on instructions from any of its clients.
Many farmers used MF Global
to hedge grain and they were hit by the bankruptcy, but most of them have come
away with relatively generous settlements.
The company won final
approval April 5 for its plan to repay creditors, paving the way for the
eighth-largest bankruptcy in U.S. history to wind down under court protection.
