Jon Corzine to be Hoisted by his own Sarbanes-Oxley?
In 1975, Jon Corzine began his career on Wall Street where he worked at Goldman Sachs. He worked his way up to partner in 1980 and became chairman and chief executive in 1994 and lead the firms conversion of Goldman Sachs to a public corporation. Shortly thereafter, Jon Corzine entered public service as a United States Senator in 2000.
As a senator, Mr. Corzine co-authored the Sarbanes-Oxley Act, a piece of legislation designed to stop malfeasance after the accounting scandals surrounding Enron, Tyco, WorldCom and other major corporations. Mr. Corzine resigned from the Senate to eventually become Governor of New Jersey.
And now all Jon Corzine, a man who has a reputation of being fiscally-responsible can say is “I simply do not know where the money is, or why the accounts have not been reconciled to date.” In addition, he apologized “to all those affected.”
So the man who championed as co-author of Sarbanes-Oxley will now be hoisted by his own petard. Obviously, as Chief Executive Officer, Jon Corzine had to swear under oath by certifying and approving the integrity of his own company's financial reports on a quarterly basis.
The mere fact that he confessed to now knowing where the money is located is practically an admission that he's guilty of violating the terms of Sarbanes-Oxley. As such, Jon Corzine will now face criminal penalties according to the provisions of the Sarbanes-Oxley Act and the alleged mismanagement of MF Global. Truly, justice will come as Mr. Corzine is hoisted by his own petard.