CEO Owed Refco $430M; Class Action Suit Filed

Law360, New York (October 11, 2005, 12:00 AM EDT) -- Futures broker Refco Inc. has placed chief executive Philip Bennett on probation after discovering he owed the company $430 million.

The Securities and Exchange Commission has initiated an investigation of the company, which is also facing a class action lawsuit filed by Lerach Coughlin Stoia Geller Rudman & Robbins LLP.

Although Refco said Bennett paid the money back with interest on Monday, the company did not indicate why its chief executive was involved in such a large transaction.

An internal review revealed that the money was...
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