Nov. 26, 2011
By Ben Berkowitz, Reuters
Former FBI director Louis Freeh was appointed trustee in the MF Global (MFGLQ.PK) bankruptcy case on Friday, days after he was hired to lead an independent probe into a sex abuse scandal at Penn State University.
Freeh, also a former judge, was appointed by the United States trustee for the region, according to a court document. The move is subject to court approval.
MF Global filed for bankruptcy protection on October 31, after $6.3 billion in risky bets on European sovereign debt spooked investors and an attempt to sell the firm failed.
U.S. regulators and Justice Department officials have been investigating the firm’s sudden collapse and trying to locate around $1.2 billion in customer funds.