[ by Melanie Gretchen ] Former CEO Jon Corzine and other MF Global Holdings officials may use as much as $30 million in insurance money on their defense in lawsuits over the futures brokerage's collapse, Manhattan Bankruptcy Judge Martin Glenn ruled earlier this week.  In turn, he rejected a request by 3 plaintiffs – including Sapere Wealth Management to put the funds' on hold while they appeal his 4/10/12 decision. Precedent. Since MF Global filed for Chapter 11 bankruptcy protection 6 months ago, many onetime customers believe the funds should be set aside for them and not go to executives they hold responsible for the company's bankruptcy.  However, Corzine and other MF Global officials are covered by precedent, Judge Glenn ruled, and noted in his brief order:

"Settled case law...establishes that the individual insureds cannot be denied contractually provided insurance protection when their employers are insolvent because others may have claims on the insurance policies."

In his initial, April 10 decision, the judge wrote that MF Global officials facing lawsuits would "suffer significant hardships" if they could not tap their insurance policies.  Last Monday, the U.S. Judicial Panel on Multidistrict Litigation consolidated more than 20 lawsuits by MF Global shareholders and customers into a single case in Manhattan federal court. To date, some $1.6 billion of customer money remains missing, the trustee for the MF Global Inc brokerage unit has estimated.  The former CEO testified before the U.S. Congress in December that he did not know where the missing money is. The cases: In re: MF Global Holdings Ltd et al, U.S. Bankruptcy Court, Southern District of New York, No. 11-15059; and In re: MF Global Inc in the same court, No. 11-02790. For further details, go to [Reuters, 4/30/12].