Home Firm Overview Practice Areas Staff In The News Publications Public Service Contact Us
Telephone: (212) 679-6000
Fax: (212) 759-3122
Practice Areas



It took Refco, the giant commodities and securities firm, only four years to implode after arbitrators in a case handled by Eppenstein and Eppenstein awarded over $42 million to 13 of its customers for their losses in a huge fraudulent trading scheme. The New York State Supreme Court confirmed the arbitrators' decisions a year later, Engel v. Refco, and tacked on another $4 million in additional interest. The Wall Street Journal called it the largest arbitration award for customers.

Only weeks after partying over its IPO, the global giant Refco was reeling from the effects of inaccurately reporting its finances to the public, the regulators, its banks and its investors. Refco tossed out on so-called "leave of absence" its CEO, Phillip Bennett, who the U.S. attorney indicted virtually overnight for the alleged securities fraud. The company was shedding divisions, and its lenders were deciding what to do.

In the wake of this spectacular collapse, Refco's creditors and investors were searching for whom to blame for their staggering losses. The auditors who approved the faulty financial statements, the hedge fund which reportedly had dealings with Bennett, the underwriters who had due diligence to perform, the board of directors, and other players (who turned a blind eye) -- were all feeling the heat as the drama unfolded.




Back To Top

Home | Firm Overview | Practice Areas | Staff | Representative Cases | Representative Clients | International Investors | In The News
Publications | Public Service | Statement of Clients' Rights | Investor Web Resources | Disclaimer | Office Locations | Site Map
Contact Us

Practice Areas:
Civil Litigation | Investment Fraud | Securities Fraud | Securities Industry Employment Law
International Investment Fraud | Commercial & Business Litigation

48 Wall Street, Suite 1100 New York, New York 10005
Telephone: (212) 679-6000
Fax: (212) 759-3122

Copyright © 2003-2007 All Rights Reserved.
Eppenstein and Eppenstein | Attorneys at Law