Refco prosecutors may add defendants
NEW YORK (Dow Jones/AP) ? Prosecutors said yesterday that they may add additional defendants to the fraud case against Phillip R. Bennett, Refco Inc.?s former chief executive, and Robert C. Trosten, the commodities broker?s ex-chief financial officer.
At a hearing yesterday, Assistant US Attorney Neil Barofsky said the government?s ongoing probe has uncovered additional information that may lead to additional individuals being charged in the matter.
?There may be another defendant or two at the table in the month?s time,? Barofsky told US District Judge Naomi Reice Buchwald.
Yesterday, the judge also rescheduled their trial to begin on October 9. The case was supposed to go to trial on March 12.
Refco sought bankruptcy protection last year, shortly after the company announced it had $430 million in debt owed to a private entity controlled by Bennett and his subsequent arrest on federal fraud charges.
At yesterday?s hearing, lawyers for Bennett and Trosten entered not guilty pleas on their clients? behalf to an expanded indictment issued in the case earlier this week.
The new indictment, issued on Tuesday, added a single count of making material misstatements to auditors against Bennett.
Bennett, 58 years old, was previously charged with conspiracy, securities fraud, wire fraud and making false filings with the Securities and Exchange Commission. He has been out on $50 million bail since shortly after his arrest last year and is on electronic monitoring.
Trosten, who is sick and wasn?t present at yesterday?s hearing, was charged for the first time in the matter last month. Trosten, 37, has been charged with conspiracy, securities fraud and two counts of wire fraud.
