Posted on 07/08/2008 4:52:04 AM PDT by prairiebreeze
NEW YORK -- Phillip R. Bennett, Refco Inc.'s former chief executive officer, was sentenced to 16 years in prison Thursday for his role in a scheme to hide the commodities broker's financial troubles.
At a hearing, U.S. District Judge Naomi Reice Buchwald in Manhattan said white-collar defendants such as Mr. Bennett often "just don't think they'll get caught."
"You and others like you play a truly high-stakes poker game," the judge said.
The judge didn't impose a fine and said restitution will be discussed at a later date. Mr. Bennett has agreed to forfeit essentially all of his assets. The government sought forfeiture of up to $2.4 billion.
Mr. Bennett had pleaded guilty to a 20-count indictment in February just before a trial was to begin. A U.K. citizen, Mr. Bennett will be deported upon completing his prison term.
"Despite the best of intentions, I made an unacceptable and appalling error," Mr. Bennett said.
Prosecutors had alleged that Mr. Bennett and others at Refco schemed to hide the commodity broker's dismal financial picture from its banks, auditors and investors from the mid-1990s to about October 2005.
Mr. Bennett, 59 years old, is expected to report to prison on Sept. 4. Three other former Refco executives have either pleaded guilty or been convicted of criminal charges in the matter. A longtime lawyer for Refco also is facing criminal charges.
Refco sought bankruptcy protection in 2005, shortly after the company announced it had discovered $430 million in debt owed to a private entity controlled by Mr. Bennett, who was arrested on fraud charges.
Austrian bank Bawag PSK reached a deal in June 2006 to settle Justice Department and Securities and Exchange Commission charges that the bank helped Mr. Bennett and others conceal Refco's true financial picture.
(Excerpt) Read more at online.wsj.com ...
IIRC, from Sam Waxel or whatever his name is. She found out some drug wasn’t going to be FDA approved, ordered her stock sold on this insider knowlege. She would’ve lost just a pittance considering her Omnimedia corporation was at its zenith at the time.
Waxel went to prison for longer than Stewart did.
What’s similar is the lack of integrity and illegality of mandated procedures in a highly regulated industry. My point in bringing up Stewart to the other poster was that Americans are as capable at committing fraud as this Brit was.
So she didn't trade on inside info of her own company? You mean she traded on info that an insider of another company gave her? How is that illegal?
Waxel went to prison for longer than Stewart did.
He traded on inside info, she didn't. He should have done more time than she did.
What’s similar is the lack of integrity and illegality of mandated procedures in a highly regulated industry.
What's different is lying on financial statements and loan documents is not the same thing as trading on info that an insider tells you is "inside" information.
My point in bringing up Stewart to the other poster was that Americans are as capable at committing fraud as this Brit was.
She didn't commit fraud in her trading. The Refco guys did commit fraud.
Why no, it wasn’t about her company. She called the broker, placed the instruction to sell before it was made public based on info Waxel fed to her about the FDA decision.
Why did the Justice Dept. initiate an investigation and why did she attempt to cover up what she did and subsequently lie about it if she did nothing wrong?
If Martha was not an Imclone insider, she could not have traded on inside information.
Why did the Justice Dept. initiate an investigation
Out of control prosecutor who doesn't know what insider trading is?
why did she attempt to cover up what she did and subsequently lie about it if she did nothing wrong?
She didn't know what insider trading was and stupidly lied to the FBI. She went to jail for lying about a crime she didn't commit. LOL!
I disagree, but guess we’ll just have to agree to that.
You disagree that she had no fiduciary responsibility to Imclone? What if she got bad info? What if he lied about the FDA approval? Do you still want to charge her with insider trading? LOL!
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