Refco CEO’s fraud charge
NEW YORK – Refco, the largest global independent brokerage for commodities, derivatives and financial futures, filed for bankruptcy protection in October after CEO and chairman Phillip Bennett was indicted on US federal securities fraud charges and taken into custody on October 12, prompting the company to admit its financial statements as far back as 2002 may not be accurate.
Bennett is accused of conducting a series of round-trip transactions to hide $430 million in debt, nearly double the company’s 2004 earnings.
A spokesperson from Grant Thornton, Refco’s auditors, says: "We are continuing our investigation related to the matters reported by Refco in its press releases. While our professional consideration is still under way, it appears to be a purposeful deception
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