Former CEO of Brokerage Refco Pleads Guilty in Securities Fraud Case
Larry Neumeister
February 15, 2008 - 8:12 p.m.
NEW YORK (AP) - The former chief executive of Refco Inc.,
one of the world's biggest commodities brokerages, cried as
he pleaded guilty Friday to conspiracy and fraud charges
that carry a possible prison term of more than 300 years.
Phillip R. Bennett, 59, the company's former chairman and
chief executive officer, pleaded guilty before U.S. District
Judge Naomi Reice Buchwald to 20 counts of conspiracy to
commit securities fraud, wire fraud, bank fraud,
money laundering and making false filings to the SEC.
Prosecutors charged that Bennett hid losses by his firm and
its Former CEO of Brokerage Refco Pleads Guilty in
Securities Fraud Case
Larry Neumeister
February 15, 2008 - 8:12 p.m.
…cont'd
Prosecutors also called for Bennett to be jailed immediately,
saying that the $50 million bail he had already posted
was insufficient, but Buchwald said she would not
immediately jail him.
His whereabouts are being monitored electronically, and he
has been limited to his homes in New Jersey and Manhattan.
customers from its auditors and investors.
The story continues below...
This article
Canadian Business Online
Become a member now | My Canadian Business
Join our advisory panel
"I knew failing to disclose these filings was wrong,"
Bennett told the court as he cried. "I know I was wrong.
I deeply regret it."
He added: "I take full responsibility for my actions and
would like to apologize to my family and all those who
were harmed by my conduct."
The Gladstone, N.J., resident left court, declined to
comment as he left court.
"Mr. Bennett has candidly acknowledged his involvement
in the matter," said his lawyer, Gary Naftalis.
"He was forthcoming and candid and wants to put this
matter behind him."
Refco went public in August 2005.
It filed for bankruptcy just weeks later after disclosing
that a $430 million debt owed to the company by a firm
controlled by Bennett had been concealed.
The disclosure caused Refco's stock value to plummet.
Refco was one of the world's biggest commodities brokerages,
employing some 2,400 employees in 14 countries.
Prosecutors said Bennett, a British citizen, likely will
spend the rest of his life in prison, given that he is 59
and federal guidelines call for a maximum 315-year sentence.
His sentencing was set for May 20.
The government said Bennett and others had concealed losses
in the financial markets and caused the company to make
false filings with the Securities and Exchange Commission
since the late 1990s.
Bennett must also turn over $2.4 billion in assets to
the government, prosecutors said.
----
Goldy,
Refco was big in nss naked short selling -
some more of the illegal brokerage banksters behind bars -
in their new home - will give US back a level playingfield
and the smallcaps will be the backbone of Freedom and
Liberty in America again.
God Bless America
News 
Market Data 
Discover 
