The Commodity Futures Trading Commission is suing former MF Global CEO Jon Corzine for failure to supervise at the defunct firm.
In a statement, the regulator said it seeks to ban the former governor of New Jersey from working in the futures industry for his alleged role in the firm's bankruptcy 18 months ago.
The suit also targets the former treasurer of the company, Edith O'Brien, and alleges that MF Global misused funds prior to its collapse. The CFTC is asking for a $100 million penalty against the company.
MF Global collapsed in October 2011 under the weight of aggressive bets on sovereign debt, thin capital and questionable disclosures to investors. Customers were left reeling after it was revealed that more than $1 billion of their money could not be found.
Corzine is charged with violating his legal obligations to diligently supervise. O'Brien is charged with aiding and abetting the firm's misuse of customer funds.
Reuters contributed to this report.