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Showing posts from May, 2008

Tone Grant convicted

In mid April, former Refco owner Tone N. Grant was convicted of all five charges related to the $2.4 billion Refco fraud. He faces 85 years in prison. Grant and former CEO Phillip R. Bennett staged round trip transactions to hide hundreds of millions of dollars in trading losses. Grant received $16 million from a leveraged buyout of the firm. On Oct. 10, 2005, Refco revealed that an entity owned by Bennett owed Refco $430 million, initiating Refco's plunge into scandal and bankruptcy. Grant is scheduled for sentencing on Aug. 7; Bennett faces 130 years and sentencing is scheduled for May 20. Joseph P. Collins, former partner with law firm Mayer Brown, is still awaiting trial on fraud charges related to the Refco case.