Reporting David Madden
By David Madden
NEWARK, Nj. (CBS) — Former New Jersey Governor and US Senator Jon Corzine has been summoned back to Washington and there’s a congressional subpoena with his name on it.
A house committee wants to grill Corzine next week over his role in the collapse of MF Global, the Wall Street firm that he led after leaving the Governor’s office two years ago.
Bad investments on European debt led to consumer losses of a half-billion-dollars, and one-billion more that can’t be accounted for.
The feds have begun a criminal probe, and the subpoena leaves Corzine in a tenuous situation, according to former federal prosecutor Robert Mintz, now a white-collar defense lawyer based in Newark.
“He’s essentially being whipsawed between the looming criminal prosecution and his desire to testify before congress,” said Mintz.
Any answers he provides could come back to haunt him in the criminal probe. If Corzine takes the fifth on national TV, he doesn’t look good. And he can’t ignore the subpoena, unless he wants to risk going to prison on a contempt citation.
Neither Corzine or anyone else is charged with a crime at this point.