Former CEO of Brokerage Refco Pleads Guilty in Securities Fraud Case.
The former chief executive of Refco Inc., one of the world's biggest commodities brokerages, cried as he pleaded guilty Friday to conspiracy and fraud charges that carry a possible prison term of more than 300 years.
Phillip R. Bennett, 59, the company's former chairman and chief executive officer, pleaded guilty before U.S. District Judge Naomi Reice Buchwald to 20 counts of conspiracy to commit securities fraud, wire fraud, bank fraud, money laundering and making false filings to the SEC.
Prosecutors charged that Bennett hid losses by his firm and its customers from its auditors and investors. "I knew failing to disclose these filings was wrong," Bennett told the court as he cried. "I know I was wrong. I deeply regret it." He added: "I take full responsibility for my actions and would like to apologize to my family and all those who were harmed by my conduct."
The Gladstone, N.J., resident left court, declined to comment as he left court. "Mr. Bennett has candidly acknowledged his involvement in the matter," said his lawyer, Gary Naftalis. "He was forthcoming and candid and wants to put this matter behind him."
Refco went public in August 2005. It filed for bankruptcy just weeks later after disclosing that a $430 million debt owed to the company by a firm controlled by Bennett had been concealed. The disclosure caused Refco's stock value to plummet. Refco was one of the world's biggest commodities brokerages, employing some 2,400 employees in 14 countries.
Prosecutors said Bennett, a British citizen, likely will spend the rest of his life in prison, given that he is 59 and federal guidelines call for a maximum 315-year sentence. His sentencing was set for May 20.
The government said Bennett and others had concealed losses in the financial markets and caused the company to make false filings with the Securities and Exchange Commission since the late 1990s. Bennett must also turn over $2.4 billion in assets to the government, prosecutors said.
Prosecutors also called for Bennett to be jailed immediately, saying that the $50 million bail he had already posted was insufficient, but Buchwald said she would not immediately jail him. His whereabouts are being monitored electronically, and he has been limited to his homes in New Jersey and Manhattan.
The former chief executive of Refco Inc., one of the world's biggest commodities brokerages, cried as he pleaded guilty Friday to conspiracy and fraud charges that carry a possible prison term of more than 300 years.
Phillip R. Bennett, 59, the company's former chairman and chief executive officer, pleaded guilty before U.S. District Judge Naomi Reice Buchwald to 20 counts of conspiracy to commit securities fraud, wire fraud, bank fraud, money laundering and making false filings to the SEC.
Prosecutors charged that Bennett hid losses by his firm and its customers from its auditors and investors. "I knew failing to disclose these filings was wrong," Bennett told the court as he cried. "I know I was wrong. I deeply regret it." He added: "I take full responsibility for my actions and would like to apologize to my family and all those who were harmed by my conduct."
The Gladstone, N.J., resident left court, declined to comment as he left court. "Mr. Bennett has candidly acknowledged his involvement in the matter," said his lawyer, Gary Naftalis. "He was forthcoming and candid and wants to put this matter behind him."
Refco went public in August 2005. It filed for bankruptcy just weeks later after disclosing that a $430 million debt owed to the company by a firm controlled by Bennett had been concealed. The disclosure caused Refco's stock value to plummet. Refco was one of the world's biggest commodities brokerages, employing some 2,400 employees in 14 countries.
Prosecutors said Bennett, a British citizen, likely will spend the rest of his life in prison, given that he is 59 and federal guidelines call for a maximum 315-year sentence. His sentencing was set for May 20.
The government said Bennett and others had concealed losses in the financial markets and caused the company to make false filings with the Securities and Exchange Commission since the late 1990s. Bennett must also turn over $2.4 billion in assets to the government, prosecutors said.
Prosecutors also called for Bennett to be jailed immediately, saying that the $50 million bail he had already posted was insufficient, but Buchwald said she would not immediately jail him. His whereabouts are being monitored electronically, and he has been limited to his homes in New Jersey and Manhattan.
1 comment:
Pemilu Indonesia 2014 sudah dalam hitungan bulan. Dikutip dari website iyaa.com Polda Maluku Utara menggelar sistem Operasi Mantap Brata Sapta di depan bekas kantor gubernur Jalan Revolusi, Ternate, dengan jumlah anggota yang dilibatkan sebanyak 800 orang.
Post a Comment