Bawag Sues Refco, Bennett For Fraud

Law360, New York (November 17, 2005, 12:00 AM EST) -- Austria’s Bawag P.S.K. Bank has sued former Refco Inc. CEO Phillip Bennett over a 350-million-euro loan extended just hours before the commodities and foreign exchange broker revealed Bennett had hidden $430 million of debt.

At the same time, the bank said Chief Executive Officer Johann Zwettler, who has headed the bank since 2003, plans to resign at the end of the year following an investigation into the loan.

The chief executive said he would step down to “keep damage from Bawag,” although the decision is “not...
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