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Former Refco CEO Bennett Indicted

According to news service stories on Thursday evening November 10, 2005, the ousted former Chairman and CEO of Refco has been indicted by a federal grand jury on one count of conspiracy to commit securities fraud, wire fraud and making false filings with the U.S. Securities and Exchange Commission. A link to the actual indictment document will be added once it becomes available from the U.S. Attorney’s office in Manhattan.

This indictment comes on the same day that the Man Group won the auction to purchase Refco’s futures brokerage division for $282 million in cash. This is considerably less than the $768 million private buyout firm J.C. Flowers & Co. LLP had tentatively agreed to purchase pieces of Refco for prior to the Chapter 11 filing for various Refco subsidiaries.