If this is true, look at the bright side. Supposing for the moment that Corzine doesn't skate because of his Democratic connections, he's got enough money to actually make good on $500 million of the theft!
MF Global was speculating on soverign debt...and doing so highly leveraged..estimates are 30:1 if not higher.
That means that you can control ( buy) $ ONE billion of debt for about $30 million down. Corzine bet the ranch that Europe would stay solvent..he went long.. If the value of the bonds increase, you make money. If the bonds decline your entire margin balance is wiped out, and you have to post more margin, or they close out your positions.
MF Global got massive margin calls..probabaly from European banks..( if the trades were with US firms, they'd be talking about it already. Corzine thought he was a "master of the universe"..if the trades were closed out, he, and the firm, were finished..so he "borrowed" the customers' $$ to post more margin, and that also was lost...when the bonds declined further..