NEW YORK — MF Global was facing new questions Tuesday over its disclosure of missing client funds, a day after former employees filed suit against the bankrupt brokerage firm. Hundreds of millions of dollars might have gone missing from customer accounts at MF Global Holdings as many as four days before the company filed for bankruptcy protection, sources familiar with the matter told The Wall Street Journal. The report suggests that MF Global executives may have known about the account shortfall earlier than they indicated to regulators and exchange operator CME group. Bankruptcy trustee James Giddens has been scrambling to find about $600 million in missing customer money. The allegations come as the embattled firm faces mounting legal woes. Two former MF employees — Pierre-Yvan Desparois, a vice president in credit risk management in New York, and Todd Thielmann, a former floor broker in Chicago — filed suit Monday on behalf of all employees, saying that they were fired without proper warning. MF, which was run by former New Jersey governor Jon Corzine, fired 1,066 employees Friday as part of its bankruptcy proceedings. Employees were dismissed without severance, and their health benefits last only through the end of November. The suit, filed in Manhattan bankruptcy court, alleges MF was legally obligated to give employees 60 days’ notice under federal law and an additional 30 days under New York state law. A planned hearing on MF’s bankruptcy that was originally scheduled for Monday was pushed to Wednesday.
