Wednesday, October 12, 2005
According to the Wall Street Jrl here, the former CEO of Refco has been charged with securities fraud. The complaint, filed by the United States Attorneys Office for the Southern District of New York, includes the following claim:
". . .there is probable cause to believe that from at least as early as in or about 2004 up to and including in or about October 2005, Phillip R. Bennett, the defendant, and others known and unknown, hid from investors in the August 2005 initial public offering of stock in party transactions between Refco and a company controlled by BENNETT, including by causing Refco to file a false and fraudulent S-1 registration statement with the Securities and Exchange Commission. When those related party transactions were disclosed to the market on October 10, 2004, the stock price plummeted, leading to a loss to investors of over a billion dollars."
NYTImes has copy of complaint here.