Tuesday, October 24, 2006

Former CFO of Refco Indicted

The Wall Street Jrl reports here that the former CFO of REFCO was indicted.  The press release of the U.S. Attorney's Office for the Southern District of New York states the Robert C. Trosten was indicted for his alleged:

"participation in a scheme to defraud Refco’s investors that resulted in losses of more than one billion dollars. TROSTEN is charged with assisting PHILLIP R. BENNETT, formerly Chief Executive Officer of Refco, in hiding from Refco’s auditors and investors hundreds of millions of dollars of debt owed to Refco by a company controlled by BENNETT."

The new indictment also added new fraud charges against former CEO of Refco Phillip R. Bennett.

(esp)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2006/10/former_cfo_of_r.html

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Comments

Wanna hear my opinion?

Okay, I am an investor in Refco\'s ill-fated IPO. I remember the day when the Department of Justice - the DOJ - were being paraded on TV...cooing about their arrest of Bennett as they charging him with fraud.

That was probably the trigger event that led to the run on the bank at Refco...I should know because I watched what happened right after that moment.

I lost 97% of my investment in 3 days and had hope that the DOJ would have my back in this!...I mean really have my back not just going through the motions!!

I am at complete odds to understand why the DOJ seems to be \"going out of its way\" to portray some very important defendants in the investor class action as \"victims\" in the DOJ\'s case!? See the revised indictment? The DOJ is doing a lot of harm right now to the investor class action by approaching it like this!...what a dark time for american justice to see how this is unfolding! Travesty!....

SEC where are you??!?!!?

Posted by: Losing my faith in the legal system | Nov 14, 2006 4:54:13 PM

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