Bank Threw CEO Under The Bus Over Refco Fallout, Suit Says

Law360, New York (September 27, 2012, 7:43 PM EDT) -- The former CEO of BAWAG PSK sued the Austrian bank, Cerberus Capital Management LP, Austrian law firm Fellner Wratzfeld Partners and others in New York state court Wednesday, saying they made him the scapegoat for broker Refco Group Ltd.'s 2005 collapse.

Helmut Elsner, who served as Cerberus-owned BAWAG's CEO from 1995 to 2003, says that BAWAG executives and its pre-Cerberus owner hid the bank's involvement with Refco from him, and then lied and blamed him when they cooperated with prosecutors.

"The BAWAG defendants' fraudulent conduct, with...
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