SEC Charges Former Refco Brokers In Short-Selling Fraud

Law360 (April 5, 2006, 12:00 AM EDT) -- A group of brokers, including three former Refco Inc. securities dealers, have been charged by the U.S. Securities and Exchange Commission with a short-selling scheme to ruin a software company to benefit a Swiss client.

Employees of unregistered investment firm Rhino Advisors Inc. were also charged. The scheme involved manipulating downward the stock price of Sedona Corp. to favor the financial interests of a Rhino client, Switzerland-based Amro International SA.

The suit, filed this week in the U.S. District Court for the Southern District of New...
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