Investor Bests Clawback Suit Over $4M Refco Payment

Law360, New York (December 2, 2011, 9:28 PM EST) -- A New York bankruptcy judge on Wednesday threw out claims accusing investor Memphis Holdings LLC of receiving $4 million as part of a massive scheme by employees of now-liquidated brokerage Refco Inc., saying the payment was legitimate.

U.S. Bankruptcy Judge Robert Drain found that investment entity Memphis, one of the few remaining defendants accusing of receiving fraudulent payments, had no knowledge of fraud at the brokerage and was not a Refco insider.

The payment to Memphis was uncovered in trustee Mark S. Kirschner's review of Refco's...
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