Did the CFTC Just Call Louis Freeh's Corrupt?

Because this sounds a lot like them saying that he is either corrupt or criminally incompetent:

MF Global Inc. (MFGLQ) commodity customers must be paid before all other claimants, including the bankrupt parent company, according to the Commodity Futures Trading Commission.

Court papers by the trustee for MF Global Holdings Ltd., Louis Freeh, contain “errors and misstatements of law” in arguing that commodity laws, which require that customers be “made whole” first, don’t apply to brokerage liquidations, the regulator said in a court filing today. Freeh, representing the parent company creditors, has said money due to them shouldn’t be “diverted” to customers.

If Freeh was right, “the senseless result would be to render inapplicable the key regulations of the Commodity Futures Trading Commission in the largest commodity broker bankruptcy in U.S. history,” the CFTC said. The result would “strip” customers of a remedy, after they entrusted their assets to the brokerage relying on rules for segregating customer money, it said.

What is going on here is that someone *cough* JP Morgan Chase *cough* looted customer accounts as MF Global as the company circled the drain, and they hired Freeh to cover up the theft.

Here's an analogy about US law for former judge and FBI director Freeh:  If you buy a stolen car, you don't get to keep it.

Am I the only one who thinks that not only is Freeh is being paid to cover up for the thieves who plundered this company in its final days, but that he's being completely incompetent about covering their tracks.

H/t Atrios.