Housing market's freeze deepens

He is accused of taking part in an eight-year scheme that deceived banks, auditors and investors, including Boston-based buyout firm Thomas H Lee Partners. Two colleagues, former Refco finance chief Robert Trosten and former president Tone Grant, will go on trial on March 17.

The government claims that Bennett, Grant and Trosten moved losses and certain expenses off Refco’s books to Refco Group Holdings – a company controlled by Bennett, Grant and another partner. The government claims the three were operating a shell game, shifting money in order to hide Refco’s actual liabilities.

In June 2006, the Austrian bank Bawag PSK agreed to pay at least $675m to settle charges that it helped conceal Refco’s true financial picture.

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