Man Financial kept the majority of the Refco futures businesses after selling Refco Overseas Ltd (Refco's European operation) to Marathon Asset Management who then relaunched the business as Marex Financial Limited.
•
Refco Inc. entered crisis on Monday, October 10, 2005, when it announced that its chief executive officer and chairman, Phillip R. Bennett had hidden $430 million in bad debts from the company's auditors and investors, and had agreed to take a leave of absence.
•
The company had been implicated in naked short sales on the stock of a company called Sedona Corp., disclosed that it was negotiating with the SEC and hoped to reach a settlement that would likely include an injunction against future violations and "payment of a substantial civil penalty."
•
The 1978 "cattle futures" trading scandal was played out in Refco accounts, the period during which the Hillary Rodham cattle futures controversy originated.
•
On February 15, 2008, Phillip R. Bennett pleaded guilty to 20 charges of securities fraud and other criminal charges.
Refco |
In October 2005, BAWAG approved a loan of 425 million euros to Phillip R. Bennett, then CEO of the commodities broker, Refco, collateralized against Bennett's own holdings in the firm.