Customer funds totaling $593 million are still missing and it's looking like the federal investigators may never find it.  Perhaps it's buried alongside Bernie Madoff's billions. Presuming the worst case scenario ... that the money is, in fact, gone forever, we're dealing with a sad, horrific situation.  It's bad enough that Jon Corzine-led MF Global had the short-sightedness to put the firm's own proprietary funds at risk by taking extraordinarily large, irresponsible, highly-leveraged bets on speculative investments. It would be galling and criminal for Jon Corzine-led MF Global to taken monies out of segregated customer accounts and placing them at risk, as well.  And yet, we've heard nothing from Jon Corzine and other senior executives of the firm.  No one has stepped forward to tell the truth.  All we know is that the firm maintained a sloppy, incomprehensible accounting ledger.  That essentially would be a cover-up of the greatest magnitude. A person or persons will have to pay for taking the money and then covering up the crime. FINRA Metes Out Theoretical Disciplinary Sanctions. FINRA has demonstrated a consistent policy of severely punishing those individuals who not only violate FINRA rules or securities regulations, but who lie or refuse to admit to their actions. Take for example an registered rep engaged in outside business activity selling, say, private placements.  Presuming that person did so without providing prior written notice to his or her member firm.  Let's say that it somehow got back to the firm that this registered rep made sales to customers of the firm.  Upon being caught, that individual has 2 choices:

1. Fully admit to the outside business activity, provide a full accounting to the member firm, agree to make investors who for losses or give up earned fees, and then assist FINRA with its investigation or provide on-the-record testimony.
2. Maintain one's innocence, deny all of the findings gathered by a FINRA examiner and refuse to assist with FINRA's investigation or simply not appear for on-the-record testimony.

In the first case, FINRA might sanction the RR with, say, a $10,000 fine and 30-day suspension.  In the second scenario, FINRA will likely issue its harshest sanction - permanent bar that individual from the industry. Applying that Standard to MG Global Employees. Federal regulators and prosecutors should "throw the book" at all culpable individuals - starting with CEO Jon Corzine, his team of executives, employees who either executed or abetted the criminal strategies along with direct supervisors. Individuals will be disciplined because:  (i) they committed the violation or crime;  (ii) they knew that violative actions were being committed but took no preventive actions, or they learned of the violative actions and didn't report the matter to authorities;  or, (iii) they should have known about the violative actions, given their position of authority in the firm or supervisory responsibilities. This approach might run counter to past cases, where regulators have tended to fine or otherwise discipline the firms but leave untouched individuals.  Examples are the SEC negotiated settlements with Bank of America and more recently with Citigroup (which has not yet been approved by Judge Rakoff).   No, not this time.  Responsible individuals will be identified and punished.  In this case, the buck must stop here.