Refco Exec Admits to Role in $2.4 Billion Fraud

Feb 21, 2008 10:04am

Former Refco CFO Robert Trosten pleaded guilty to cheating customers out of $2.4 billion fraud, the U.S. Attorney for the Southern District of New York announced Wednesday. Trosten’s plea comes nearly a week after Refco’s CEO Philip Bennett pleaded guilty for his role in a scheme to mask the company’s losses as debt owed from a company Bennett controlled. The U.S. attorney says the scheme began in 1998 and extended to 2004, with big Refco executives hiding their losses from auditors, banks and investors. Trosten pleaded guilty to five counts including securities fraud, wire fraud, bank fraud and money laundering. Refco Inc. was a New York-based financial service giant that Trosten, Bennett and others drove into bankruptcy in 2005. Click Here for Full Blotter Coverage.

You are using an outdated version of Internet Explorer. Please click here to upgrade your browser in order to comment.
blog comments powered by Disqus