Refco trusts sue banks, accountants for $2 bln

Discussion in 'Wall St. News' started by ASusilovic, Aug 22, 2007.

  1. REUTERS :

    (Adds comment from Grant Thornton)

    By Paritosh Bansal

    NEW YORK, Aug 21 (Reuters) - Trusts representing Refco Inc creditors on Tuesday sued the now-defunct futures and commodities broker's legal, accounting and financial advisers for more than $2 billion over Refco's collapse.

    The Refco Litigation Trusts said they sued Banc of America Securities (BAC.N: Quote, Profile, Research), Credit Suisse Securities (USA) (CSGN.VX: Quote, Profile, Research) and Deutsche Bank Securities (DBKGn.DE: Quote, Profile, Research) in the circuit court of Cook County, Illinois.

    The 155-page complaint also names accounting firms Ernst & Young [ERNY.UL], PricewaterhouseCoopers [PWC.UL] and Grant Thornton; law firm Mayer, Brown, Rowe & Maw LLP; certain loan participants, including Ingram Micro Inc (IM.N: Quote, Profile, Research); and Refco executives, including former Chief Executive Philip Bennett.[...]

    The lawsuit, the latest in a series of cases stemming from the collapse, alleges that Refco's fraudulent scheme "only could have worked with the active assistance of Refco's cadre of outside auditors, professionals and advisers."
  2. Widely known fact.

    They had to face justice soon or later.