Refco CEO Bennett Gets 16 Years

     MANHATTAN (CN) – Former Refco CEO Phillip Bennett was sentenced on July 3 to 16 years in prison and ordered to pay $2.4 billion for his role in the company’s $2.4 billion fraud. Bennett pleaded guilty in February to all 20 charges against him, including conspiracy, securities fraud, wire fraud, bank fraud and money laundering.

     Bennett oversaw massive book juggling to hide losses and inflate revenue. The frauds were discovered after Thomas H. Lee Partners bought Refco in August 2004. The company collapsed in October 2005.
     U.S. District Judge Naomi Reice Buchwald “held Bennett responsible for stealing approximately $2.4 billion from Refco’s banks and investors,” the U.S. Attorney’s Office said. Bennett, 59, of Gladstone, N.J., was ordered to report to prison on Sept. 4.

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