The former head of bankrupt US broker MF Global, Jon Corzine, could face legal action over the firm's collapse, the liquidating trustee has said.
Following a lengthy investigation, James Giddens said he might sue Mr Corzine and other top executives for negligence and breach of duties.
About $1.6bn (£1bn) of client money went missing before the firm filed for bankruptcy protection in October 2011.
Mr Corzine has said he has no idea where the money went.
The firm made the Chapter 11 bankruptcy filing after making a $6.3bn bet on European sovereign debt.
Mr Corzine, a former governor of New Jersey and chief executive of Goldman Sachs, said the bet was not the reason for the firm's collapse.
He blamed decisions by the previous management which forced MF Global to declare a loss, undermining confidence in the firm among investors.
However, in a 275-page report, Mr Giddens said the company "dramatically changed" under Mr Corzine, who wanted to grow the business into a global investment banking powerhouse.
The firm "failed to add to its treasury department and technology infrastructure, which was needed to meet the demands on global money management and liquidity", the trustee said.
He added that when the credit crisis hit and money dried up, the firm was forced to use clients' money to make up shortfalls from trading on its own books.
Unable to keep track properly of money moving between various accounts, the firm ended up using more client money than it should have, Mr Giddens said.
A spokesman for Mr Corzine said: "We simply do not agree with the trustee's suggestion that Mr Corzine was negligent or there is any basis to sue him."
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