Sphinx Sues Refco To Recover Settlement Losses

Law360, New York (June 30, 2006, 12:00 AM EDT) -- A group of hedge funds has sued Refco Inc. for at least $270 million, accusing the embattled futures broker, along with its founder and an Austrian bank, of a conspiracy that ultimately ruined the hedge funds’ collective value.

The 21 funds, managed by Cayman Islands-based Sphinx Ltd., said that millions of dollars allegedly transferred out of Refco by former chief Phillip R. Bennett just prior to the firm’s collapse included Sphinx money.

In the complaint, Sphinx said its funds should never have left the relative safety...
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