WASHINGTON — A Republican member of the House Financial Services Committee is pushing for the Justice Department to turn over its investigation of the MF Global Holdings collapse to an independent counsel, according to people familiar with the matter.
Rep. Michael Grimm (R-N.Y.), a first-term House member, circulated a letter Wednesday in an effort to get other legislators to sign on. He is working to get more signatures in coming days before turning over the letter to Attorney General Eric Holder, one of these people said.
The move comes about six months after the commodities brokerage firm tumbled into bankruptcy and the revelation that money was missing from customer accounts. The shortfall is estimated at about $1.6 billion.
Criminal and civil investigators have been looking into the case, but so far have said little about the progress of their investigation.
That has led some Republicans and customers of MF Global to question whether the investigation is being slowed by a desire to show deference to the firm’s former chief executive, Jon Corzine.
Corzine, a former US senator and governor of New Jersey, has been a prominent Democratic fundraiser and supporter of the Obama administration.
A spokesman for the Justice Department declined to comment, as did a spokesman for Corzine.
While some critics claim politics as a reason for the slow pace of the MF Global probe, others involved with the investigation cite difficulty proving that any employees of the firm had intent to move customer money from customer accounts.
James Koutoulas, a lawyer representing MF Global customers, said an independent counsel is “much needed due to the conflicts in the case.”
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