The court-appointed administrator in charge of winding down MF Global Holdings Ltd. is concerned about the “exorbitant” defense fees being rung up by lawyers defending Jon Corzine and other former executives and managers in a securities fraud lawsuit, the Wall Street Journal reported today. “Defense fees incurred to date exceed $40 million, a figure that has never been adequately explained or justified and which suggests duplication of efforts among the Individual Insureds’ professionals,” lawyers for the administrator said in a Friday court filing. Bankruptcy Judge Martin Glenn last month denied the executives’ request to use an additional $10 million in insurance money, saying he wanted to wait until an appeal from MF Global customer Sapere Wealth Management was heard. The executives are asking the judge to reconsider his decision.
