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Refco Execs go to Jail

In the latest court move by former Refco officers, Robert Trosten, Refco's former chief financial officer, is the third Refco executive to plead guilty to charges of fraud and conspiracy. He is cooperating with prosecutors and faces up to 30 years in prison for bank fraud and 20 years for securities- and wire-fraud.

In mid February, Phillip Bennett, former CEO of Refco Inc., pleaded guilty to 20 counts of fraud, conspiracy, securities fraud, bank fraud and falsifying filings with the Securities and Exchange Commission (SEC). He was sentenced to 315 years in prison. This follows executive VP Santo Maggio's confession in December, which led to him giving back $23 million. Former Refco President Tone N. Grant and Mayer Brown lawyer Joseph P. Collins still are facing charges and are maintaining their innocence.

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