Toomre Capital Markets LLC

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Joseph Collins, Refco's External Lawyer, Indicted for Fraud

Toomre Capital Markets LLC ("TCM") has previously written several posts about the massive fraud that occurred at Refco and how various other organizations might have contributed to the illegal activities. These posts included a highly popular one entitled Details on Mr. Flottl, Bawag and Refco Losses in WSJ and another that is frequently searched entitled Connections: Refco, Bawag, Ross Capital Markets and Liberty Corner???. In the October 2005 posts Law firm Mayer, Brown, Rowe & Maw involved in Refco case and Chicago Sun-Times: More on Refco and Mayer Brown, TCM noted the rather curious fact that various publications were suggesting that Refco's outside legal advisor, Joseph P. Collins of Mayer, Brown, Rowe & Maw LLP, might be involved in the Refco scandal.

Throughout the entire Enron scandal, no external lawyer to Enron was ever indicted for the work done on special purpose entity transactions that were used to hide Enron's losses. Why then was Attorney Collins, a well-known specialist in derivatives and securitization legal specialties, being linked to the Refco scandal? On Tuesday December 18, 2007, the public learned why when both the Southern District of New York and Securities and Exchange Commission indicted Attorney Collins for being an alleged active participant in the Refco fraud. TCM is really sad to learn of these developments as the firm has had some direct interaction with Joseph P. Collins and Mayer Brown and found their legal work to be absolutely first class.

A copy of the federal indictment is here and the SEC complaint is likewise linked here. Click on this link to get a summary of all of the relevant news stories.