Refco controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
Back to profile4 entries
2006
Alleged counterfeit bond holdings
Information disclosed during the investigation indicated that Refco held offshore accounts containing as much as $525 million in allegedly fake bonds associated with Bawag P.S.K. and Liquid Opportunity.
2005
Concealment of approximately $430 million in bad debts
Refco disclosed that chief executive Phillip Bennett had used transactions involving Liberty Corner Capital Strategy and a secretly controlled offshore entity to conceal bad debts and make the company's financial position appear stronger at reporting dates.
2005
Improper short-selling allegations
Refco disclosed receiving a Wells notice concerning alleged improper short selling at Refco Securities and related matters, including activity involving Sedona Corp.
2001
Bogus order-ticket case
The National Futures Association ordered Refco to pay $43 million to 13 investors after a Refco broker used bogus order tickets to clear trades.