To our clients and industry colleagues,
Let us begin by saying that Cervino Capital greatly values your business. We have always strived to put capital preservation and risk management at the forefront of our trading and operational activities.
As you know, on October 31, 2011 MF Global—one of the FCMs though which we cleared many of our client accounts—filed for bankruptcy. Subsequently, it came to light that “sacrosanct” rules, which specifically required client funds to be segregated from the firm’s assets, were not properly followed.
See: http://www.cftc.gov/PressRoom/PressReleases/pr6140-11
See: http://www.cftc.gov/PressRoom/SpeechesTestimony/opasommers-18
See: http://dealbook.nytimes.com/2011/12/28/mf-global-scrutinized-on-moving-of-money/
We empathize with everyone affected by the travesty that has unfolded at MF Global since the end of October, and note that we too were personally impacted by this situation.
On November 22, 2011 we took action by being the first to file a class action lawsuit against Jon S. Corzine and other senior executives at MF Global Holdings Ltd. The case is Accomazzo v. Corzine, 11-CV-8467, U.S. District Court, Southern District of New York. The case is being consolidated with other cases under a single U.S. District Judge, but our attorneys are moving to lead the sub-class on behalf of futures customers.
See: http://www.businessweek.com/news/2011-11-23/jon-corzine-sued-by-mf-global-customer-over-client-assets.html
As a sign of our commitment to our customers, Cervino Capital has decided to waive Q4 2011 fees for clients who were clearing their account at MF Global at the time of the bankruptcy, and who as a result suspended trading. Cervino Capital is respectful of the fact that this has been a painful period for MF Global customers and hope our gesture in a small way eases the burden.
Should you have any questions, please do not hesitate to contact us. In the meantime, we will continue to do what is in our power to ease the frustrations of our clients and business partners.
Very truly yours,
Michael “Mack” Frankfurter, Managing Director
Davide Accomazzo, Managing Director
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