Investor Challenges Sphinx, Refco Settlement

Law360, New York (June 19, 2006, 12:00 AM EDT) -- An investor in the crumbling Sphinx Managed Futures Fund has appealed the $263 million settlement between SMFF and bankrupt futures broker Refco Inc., claiming that the fund used money from defrauded investors to make the payment.

The Masonic Hall and Asylum Fund, a charitable organization based in New York, claims that SMFF, which is run by PlusFunds Group Inc., defrauded its investors and then used their funds to settle a dispute with Refco’s creditors.

The Masonic Hall Fund has asked a New York district court to...
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