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Oct 11, 2005 11:42 pm

Below is the first part of the story the rest is in the link below.

Scandal rocks New York brokerage firm

· Refco chief executive owed company $430m

· Accounts cannot be relied upon for accuracy

David Teather in New York

Tuesday October 11, 2005

The Guardian

The esoteric world of derivatives was rocked by scandal yesterday when leading futures brokerage Refco, which has substantial operations in London and New York, said it had discovered that chief executive Phillip Bennett owed the company $430m (£250m) and that none of its accounts dating back to 2002 could be relied upon for their accuracy.

The disclosure is likely to increase calls for tighter controls of the high risk and often arcane financial instruments that have seen phenomenal growth over recent years in the City and on Wall Street.,3604,1589110,00.h tml

Oct 11, 2005 11:52 pm

It means CS First Boston did not do their due diligence. The whole IPO was

just over $600 milion.