The failure of Phil Bennett, ex-CEO of Refco, to repay the money to the company before the news of the falsification hit the streets is the most curious aspect of this whole situation. He obviously had access to $430 million somewhere.
Had he made restitution before the news of the company's accounting falsification become public would Refco be in as sorry a condition as it now is? Sure, Bennett would still be out $430 million and chances are he would still be an ex-CEO, but it's likely he would have been allowed to resign, thus preserving some measure of dignity. I don't see how the company could have kept the falsification hidden, so Bennett would probably still have been indicted. But, I don't think the run to the hills by Refco's industry partners and bankers would have been so precipitous. And, it is this run to the hills that has put the company in such dire straits.
Clearly, it takes time to convert $430 million into cash. It's doubtful that Bennett had this much money stashed in a cookie jar. So, maybe he tried to repay the money before the bad news came out, but his timing was bad.
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