Government Probes $525M In Fake Bonds In Refco Case

Law360, New York (March 16, 2006, 12:00 AM EST) -- In addition to the $430 million in bad debt that Refco’s former chief executive allegedly concealed, the government is reportedly looking into $525 million in possible fake bonds that the beleaguered company held in offshore accounts before its initial public offering, according to a Bloomberg article on Thursday.

Refco held the securities for Bawag P.S.K. Bank, the fourth-largest bank in Austria, and Liquid Opportunity, an offshore hedge fund, under identification numbers that do not match up with registered bonds, according to four individuals who know about...
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