Wednesday, December 19, 2007
The SEC filed a settled civil injunctive action against Santo C. Maggio, a former senior executive of Refco Inc. and its corporate predecessor, Refco Group Ltd. (together, Refco). Maggio was an executive vice president at Refco and headed Refco's registered broker-dealer subsidiary. The Commission's complaint alleges that Maggio played a significant role in concealing hundreds of millions of dollars of related party receivables and also alleges that Maggio participated in certain practices that inflated Refco's financial results. Yesterday both the SEC and DOJ filed charges against Refco's principal outside attorney Joseph P. Collins in connection with the Refco fraud.