Phillip Bennett, former chairman and CEO of the investment group Refco, has settled with the Securities and Exchange Commission over charges that he concealed hundreds of millions of dollars in trading losses and operating expenses.
Refco shifted debt to third parties at the close of fiscal periods, artificially inflating its financial results. Public revelations of the over seven-year-long scheme in October 2005, two months after the company's initial public offering, caused hundreds of millions of dollars in losses to Refco shareholders and led to the collapse of the company.
Bennett's settlement with the SEC came only a few weeks after he was sentenced to 16 years in prison for his role in the Refco fraud. He was also ordered to forfeit assets of up to $2.4 billion.
The final judgment with the SEC permanently enjoins Bennett from violating antifraud, record keeping, periodic reporting, internal controls and certification provisions of the federal securities laws and bars him from serving as an officer or director of a public company. Bennett also consented to the issuance of an SEC order barring him from association with any broker, dealer or investment adviser.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access