Former NJ Governor Corzine Target of Congressional Subpoenas
Former New Jersey Governor Jon Corzine has been subpoenaed by the House Agriculture Committee and the Senate Agriculture Committee to testify at their respective hearings this week and next week regarding his role in the collapse of MF Global. Corzine resigned early last month after MF Global filed for bankruptcy protection. Congress expects Corzine to testify regarding the allegation that up to a billion dollars in customer funds are missing. However, to date, Corzine has not been charged with any crimes in connection with the investigation into MF Global’s business practices. MF Global filed for bankruptcy after making risky investments in European sovereign debt that did not pay as expected.
The subpoenas present an interesting predicament for Corzine. As a former Governor of New Jersey and a former Senator who is in the public eye, Corzine would likely want to testify and explain his conduct so as not to raise public suspicions that he did anything illegal. However, if he chooses to testify before Congress, he faces two potentially serious traps. First, he faces the high probability that things he says during his testimony would incriminate him and would lead to the filing of criminal charges against him and other company officials. Second, he faces that possibility that he misstates something, which could potentially lead to perjury or obstruction of justice charges.
Under the Fifth Amendment of the United States Constitution, citizens cannot be forced to testify before a tribunal under oath if that testimony would tend to incriminate them. However, while citizens have the right to remain silent, if they choose to ignore that right and to testify, they cannot provide false testimony. While “taking the fifth” may provide for bad publicity for Corzine, he would be wise to exercise his privilege against self-incrimination and to refuse to testify before Congress. There are countless stories of high-powered executives, attorneys, business people, media moguls, sports stars and others who found themselves charged or convicted of crimes because they ignored their right to remain silent and thought they could outsmart law enforcement. As the saying goes, “when in a pickle, take the nickel.”
