Refco Paid Insiders $1B In Cash Before Collapse

Law360, New York (October 20, 2005, 12:00 AM EDT) -- In a discovery sure to prompt several more class-action lawsuits, Refco’s financial statements revealed that before the firm’s collapse insiders received over $1 billion in cash.

In the year leading up to Refco’s recent bankruptcy filing, executives took $1.124 billion from the firm, much of it coming from the sale of a large stake in the company to private equity firm Thomas H. Lee Partners.

The deal was completed in August 2004, at which time $1.057 billion of the $2.2 billion payment was given in large...
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