The CFTC is charging Mr Corzine with a "failure to supervise diligently" when customer funds were misused to cover bets on debt.
"Corzine is charged with one count of failure to segregate and misuse of customer funds and one count of failure to supervise diligently", a news report said.
A rule requires anyone registered with the agency, which Mr. Corzine was, to "diligently supervise" the conduct of all employees.
Instead, the suit hinges on his supposed failure to "diligently supervise" the firm as it raided the client accounts.
The commission recommends that parents follow safety tips like checking equipment for sharp edges, adding wood chips or mulch to play areas and diligently supervising children.
The trustee's complaint repeats the central accusation of other lawsuits: How could the firm have kept its promises to supervise Mr. Madoff diligently and still have missed all of the red flags in his operation?
While the agency did not accuse Mr. Corzine of authorizing the breach of more than $1 billion in customer money, or even knowing that the wrongdoing had happened, it claimed that he had failed to "diligently supervise" the firm as it jeopardized the client accounts.
"He diligently supervised its multiple adventures its brief spiralling rise, its determined fall (like a sycamore seed, a helicopter blade, an injured grouse on the wing), its eventual splash-landing, its half-hearted floating, its gradual submerging, with a strong, with a wicked, with a powerful sense of satisfaction".Why settle for a descriptive phrase when a whole prose-poem will do?
Trustees would have an enforceable duty to supervise the work of servicers diligently, and hold servicers accountable.
Unless they exercised diligently.
