You knew it was coming when this corrupt rat-bastard was appointed trustee. Now he’s trying to f%$# the account holders out of the money that JP Morgan Chase and the rest of the usual suspects stole from the:

MF Global Holdings Ltd. (MF)’s creditors should have some priority to be repaid by the bankrupt estate, said Chapter 11 trustee Louis Freeh, citing intercompany loans made between the failed parent and its operating unit.

Freeh, representing the interests of creditors of the parent company, commented on the legal principles that will govern repayments in papers filed late yesterday in Manhattan bankruptcy court. Former customers of the broker-dealer unit, seeking an estimated $1.2 billion missing from their accounts, are being repaid in a related case overseen by a different trustee, James Giddens, appointed under the Securities Investor Protection Act.

The holding company has “substantial intercompany claims” against the broker-dealer unit on account of former intercompany loans, and any recoveries of that money shouldn’t be “diverted” to customers, giving them a priority at the expense of creditors of the parent company, Freeh said.

Freeh is concerned that “an inappropriate interpretation” of the law may lead Giddens to deny the rights of creditors to recover from property that was never deposited by them, lawyers for Freeh wrote.
Customer Pool

The conflict is “not whether certain estate property can be distributed to customers, but whether estate assets that would otherwise be available for distribution to MF Global Inc.’s creditors can be reallocated to the customer pool,” Freeh said.

Seriously, the assets he is referring to were stolen by those “creditors”.

First, he obstructs the investigation of the theft of client accounts, and now he’s trying to f%$# the account holders.

It must be nice to be able to be so blatantly corrupt and get paid for it.