Ex-MF Global Broker Sentenced to 5 Years for Rogue Trades

Note this part:

Patrick Fitzgerald, the Chicago U.S. attorney at the time, said Dooley “allegedly induced MF Global to open a trading account and act as his financial guarantor by providing false information about his financial condition on his account application.”
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People need to be aware that there can be *severe* consequences to lying about your financial condition on an account application!

Admittedly here the guy was a broker but the same principle could apply to retail traders too if they were naked short and their account incurred large losses on a crash or whatever.
 
It was MF employees who liquidated the position( creating the biggest spike ever on wheat ) and he has to pay 141 M$??? That's crazy...I have no sympathy for him but most of the loss came from the stupid guy who sent a 32000 lots market order and liquidated the position...
 
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