The unregulated broker-dealer unit of Refco Inc., Refco Capital Markets Ltd, says it owes customers about $4.16 billion. This is $486 million more than previously estimated by the parent company.
Refco Inc. has filed for bankruptcy protection, and in those filings, it showed Refco Capital Markets owing $3.68 billion to customers. Total liabilities for the unit were listed at $5.34 billion, with $5.95 billion in assets.
The bankruptcy filing occurred one week after the former CEO, Phillip Bennett, was accused of hiding $430 million of debt. Bennet has pleaded not guilty to charges of fraud and conspiracy.