Dollars and Jens
Wednesday, March 15, 2006
Refco Inc. held offshore accounts with as much as $525 million in fake bonds, indicating the futures broker's troubles may be more extensive than previously reported, according to four people with direct knowledge of evidence gathered by U.S. prosecutors investigating Refco's collapse.
The bond accounts were at Refco's Bermuda-based unit, beyond the reach of U.S. regulators. Refco owed creditors $16.8 billion when it filed for bankruptcy protection on Oct. 17, a week after former Chief Executive Phillip Bennett allegedly used a loan from [Bawag P.S.K. Bank, Austria's fourth-largest bank] to pay uncollectible debts he had concealed from investors. Bennett denied wrongdoing.

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