Phillip Bennett, the former CEO of Refco, reported to the Federal Correctional Institute at Fort Dix in New Jersey yesterday to begin his 16-year sentence for his role in Refco’s financial fraud. The Times Online reports that after Bennett has served his sentence he will be deported to Britain.
Refco went public in August 2005 but filed for bankruptcy weeks later after disclosing that a $430 million debt owed to Refco by a company controlled by Bennett had been concealed. Refco’s share price plummeted after the disclosure, resulting in an estimated $1.5 billion loss for investors.
Prosecutors held nothing back in connection with Bennett’s sentencing. The Times Online article quotes prosecutors as stating that “[i]n terms of scope, length, sophistication, harm and criminal benefit, Bennett stands on a plateau of criminality that frankly makes comparisons difficult.”