Phil Bennett faces 315 years in prison over Refco

February 15, 2008 - (Tip Report) New York- Commodities swindler extraordinaire, Phillip Bennett, wept like a baby in Manhattan's Federal Court today when he pled guilty to securities fraud relating to Refco, whose IPO came and went a month later when the perpetrator was caught.

Crying openly before U.S. District Judge Naomi Reice Buchwald in New York Friday when he pled guilty to the charges brought against the British citizen, Bennett told the judge, "I know I was wrong. I deeply regret it."

Bennett remains free on $50 million bail and his sentencing is scheduled for May 20th. Prosecutors wanted Bennett's bail revoked, though Judge Buchwald said no, that the former Refco executive could remain free. Bennett is confined to his New Jersey home where he wears an ankle device meant to keep track of his whereabouts.

The government has ordered Bennett to hand over $2.4 billion in assets. Still, even with the surrender, prosecutors are calling for a life sentence. They charged that the ex-Refco executive concealed millions in losses from auditors and investors alike. But despite the asset surrender, which is four times the amount Bennett secretly withheld from auditors and investors alike, thousands of former forex traders are in a lurch, unsure of where they stand in the whole mess. Many have complained bitterly that the media - and courts- have all but ignored them.

Refco, went public in 2005 and at the time a company owned by Bennett owed the commodities firm $430 million, which was not disclosed until after the IPO. News of the loss caused Refco's stock to collapse.

Bennett actually faces a 315 year prison term and will most likely spend the remainder of his life behind bars. Judge Buchwald noted that with the collapse of Enron, lengthy prison sentences are typical in cases such as this. "The situation is the same for Mr. Bennett," said Judge Buchwald. "He will most likely spend the rest of his life behind bars," in implying that at 59 years of age and with as many years as Bennett was facing in prison, by the time he would otherwise been old enough for parol, he will most likely have died of old age.

Refco filed for bankruptcy just one month after completing its IPO. FXCM, which was partially owned by Refco tried to buyback its stake and along with it the 17,000 accounts, which a judge had approved until the major secured lenders stepped in and prevented it.

Bennett was charged with securities fraud on October 12, 2005.

Unless the daring Englishman has some disappearing trick up his sleeve, he most likely will serve the rest of his years wearing prison blue, unlike Kenneth Lay, who cheated the Court out of revenge having died of a heart attack before his prison sentence was to begin. I doubt Phil-the-cry-baby Bennett will be so luckly. But then again, has anybody checked to see if Lay is really six feet under?