Saturday, October 28, 2006

Refco back in the news

Philip Bennett, the Refco CEO, was indicted shortly after the scandal broke last Fall. Now, the CFO, Robert Trosten, has been indicted for being part of a fraudulent scheme. The 37-year-old Mr. Trosten walked away with $48,000,000 when he left Refco.

Bawag PSK, an Austrian bank, was intimately involved in the Refco scandal. Its exact involvement has not been fully explained but it appears to have been the linchpin in making the scheme work for many years. This week saw Viennese prosecutors charge nine people involved with Bawag on various offenses, including embezzlement and fraud.

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