Sphinx Wants Refco Transfer Mystery Revealed

Law360, New York (June 12, 2006, 12:00 AM EDT) -- In free-fall since Refco Inc.’s collapse, several hedge funds once run by PlusFunds Group Inc. have sued the fund’s chairman and two directors for allegedly transferring money without their knowledge to an unregulated unit of the former brokerage giant.

Sphinx Ltd. and two other hedge funds filed suit in Manhattan on Friday, blasting PFGI and its managers for purportedly violating their fiduciary duties by failing to keep Sphinx's assets separate from those transferred to unregulated Refco Capital Markets.

"There was no bona fide business reason for...
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