You look up and see 15 years, man, how a successful guy can go right off the end of sanity into such an arcane realm that leads to such a disaster is simply amazing.
HOWEVER,
the axiom of believing they will never get caught surely is well known by many others in a whole other realm.
The e Toys entity went IPO in 1999 for $8bn and bankrupt March 2001, instead of investigating or prosecuting the Federal system of Justice stood idle while the Debtor’s law firm petitioned the Federal Judge for permission to Destroy Books n Records.
The SEC, US Trustee’s, Creditors Counsel and DOJ all stood idle and permitted such an esoteric request to proceed.
Then the Exec’s felt FREE and abandoned the Estate with Glee! Leaving the sharks of the Debtor and Creditors counsel the estate to do with as they will. Though they were warned not to replace key personnel with anyone connected to them by the US Trustee’s office, they simply ignored the authority, drafted a clandestine Hiring Letter and planted a paid associate of the Creditor’s Counsel within the Debtor as CEO, nearly $45 million has gone into mystery land since filing BK.
Of Course, the difference in e Toys and Refco is the parties harmed and benefited.
Refco hurt Institutional Investors (and we can never let that happen now, can we).
In e Toys the shareholders, creditors who were not Toy Industry (Like the Post Office) and others got the shaft as the counsels sold all good assets to their other client. The one thing they had that the Refco guys did not, was a partner at the Debtor’s law firm is now the local US Attorney.
His reward for willful blindness about prosecuting the people that were former partners or clients.
Nomination for the Federal Bench!
http://fraud-corruption-mnat.blogtownhall.com/

16 years?! Bet he could have gotten the same with a lawyer who would have charged him a whole lot less than Naftalis.

For those of us that worked at REFCO, 16 years is not long enough. We lost so much: time, money, career momentum, health and sanity. Revenge isn’t even the point; I don’t want revenge. But I want him to feel what we felt. And I want the next crooked CEO to think twice before cheating.

Correct Spanishmoon

The point of the published punishment is to halt any further mendacity plotted by others who think they can “get away with it”.

They all feel they have gotten away with it in e Toys, Stage Stores and Kmart.

One can only hope that next Administration will not put up a phony Corp Fraud Task Force and that this BS, known as Deferred Prosecution Agreements will not continue to bribe our DOJ into further complacency.

They should have put Bennett in an insane asylum. The guy is clearly nuts. He was running a friggin gold mine that he owned, and he had no reason to go public. Then when he does go public he enters into some ridiculous sham transaction with some bogus fund in NJ, the result of which he gets exposed and all his customers flee Refco. Again, Refco had no reason to go public. Bennett had no reason to cook his own books. He didnt need the cash. and even if he did, he could have sold Refco for billions and just cashed out. What this guy did was so mind boggling, that a he must have been legally insane….

Well I lost money in the currency markets because of Refco but bear the man no ill will. I am not sure what he was guilty or not guilty of but I do know the $430 million was paid back to Refco when discovered and the company went down because of market perception not someone absconding with $430 million. Most Companies and CEOs lie about their financial statements, the public knows this yet continues to invest, so if you lose it is your own fault, the markets are the same as a dirty poker game and bets must be made accordingly. And angry employees should realize their employers would sell their mothers to make a buck. For those who want more retribution, 16 years is two lifetimes and the best thing for Phil is to die before he has to experience it, just like the not guilty Kenny Lay did.

A bogus concept, inept logic and absurd conclusion Kafka. To infer that everything is rigged and no one should ever work anywhere is simply nuts.

The FBI and DoJ personnel who believe in the system are making a difference with these large prosecutions to the point parties are feigning suicide to try to escape culpability. Wishing death upon someone is as morose as one can get. You need help.

Personal financial ruin is one thing, but 16-years for a non-violent crime is ridiculous. I have endured investigations and my advice to business people is to not give the government an inch. They are your enemy, and never forget that. The burden of proof is on the government, and you have no obligation to help them. Kick, scream, and drag your heels because they have no obligation to give you a break if you are nice to them. Take a page out of Veep Cheney’s play book. The government can, with very little notice, come in and freeze/levy your bank accounts, audit/investigate you, and otherwise make your life a hell. Take your personal interests to heart and work to secure those interests, because there are a lot of people in the government who, like Elliot Sptizer, will, without any compassion or mercy, destroy lives in the name of “justice”. To me, these people are the ultimate criminals.

Mr. Nuts: you perhaps misunderstand on purpose, I was inferring nothing other than the markets are rigged and if one invests in the markets, one should figure out how they are rigged and substantial profits can be made. The rigging occurs at all levels of the government with their made up statistics and companies with their BS financial statements. Figuring out the lies is easy and profits will roll in once the lies are deciphered. For example, starting under Welch for at least 30 years, GE has smoothed over its earnings by increasing or decreasing reserve accounts, all big companies do it, but the last 5 years have not been kind to GE since their reserves have been dwindling. Short sellers made a fortune with their genius call on CDOs, lets see, rating agencies are paid by the dudes selling the CDOs and mortgages are being originated from people who have to provide no documentation while at the same time the Fed is printing money to prop up the economy due to the costs of killing Arabs, you do not even have to be a genius to call that one. Or just the other day, your lying president answered the question of a reporter about GDP (another fictional market moving number), the liar in chief said he thought GDP would be more positive than people thought. The reporter asked the liar in chief if he had any specific knowledge on the matter and the big liar said no. Now I know the dude is hated by 75% of America and already admitted to not knowing gas was over $4 dollars a gallon, so there is no way in the world he would want to be wrong, thus, he had inside info. That night I loaded up on the dollar with 200 to 1 leverage and sure enough the next day when GDP was reported, I pocketed a very nice profit. These are just some simple examples, thousands exist and I am truly thankful for them because rigged lying markets are far more easy to profit from than “fair” markets if such a thing has ever existed. Dude, if you knew anything about the U.S. prison system, death is far more compassionate than even one year in prison. In fact, I maintain instead of the DOJ indicting people it would be more compassionate to just put a bullet in the indictee’s brain, it would be better for the indictee’s family and save the bankrupt government a bunch of money.

At this guy’s age the sentence is a death verdict. Except, of course, that one supposes that his money can buy good quality treatment in Club Fed.

i too agree with kafka

Hey, nuts dude here is a quote today from NYT that illustrates my point, figure out the lies and easy profits will come. “But critics say the changes appear to be a last-ditch push by appointees of President Bush to dilute securities rules passed after the collapse of Enron and other large companies — measures that were meant to forestall accounting gimmicks and corrupt practices that led to those corporate failures. Legal experts, some regulators and Democratic lawmakers are concerned that the changes would put American investors at the mercy of overseas regulators who enforce weaker rules and may treat investment losses as a low priority.” Of course I forgot to mention since you brought up the DOJ and FBI their corrupt ways which are numerous like the recent DOJ no bid $40,ooo,0000 contract to AssCrack the former AG before Gonzo (who apparently has Alzheimer’s with no disrespect to those who actually have Alzimer’s) from his former employees to keep a company on the straight and narrow which the company agreed to pay AssCrack in exchange for a non prosecution agreement…….Also, the FBI according to the OIG intentionally violates the law 10s of thousands of times without criminal intent (I do not know how that is possible) but the best is I know of an alleged short selling inside trader who was getting tips from the FBI on companies that were either to be investigated or negative press releases on companies being investigated, he made much profit and then when caught the FBI dudes ratted and got 2 years and the short seller got 12 years, very nice. I hope you had a happy fourth, a neighbor of mine rented a barge and had a beautiful fire works show for the whole neighborhood by the beach, all I could think of was the fireworks represented bombs (plus they scared my dog), so in effect this country was celebrating all the dead women and children the U.S. is bringing freedom and all of our magnificent dead or wounded soldiers (the real national treasure not the Trillions that will be borrowed from the Asians and Arabs) killed by bombs so the Bush Clan can reap their oil dollars, America should be so proud. And Angie, something must be wrong with you, because most on this blog hate me.

The premise that the FBI knows is wrong thousands of times and it is not illegal is absurd. There are good public servants who take their job seriously. We just have to find them or “protect” them from retribution.

When we reported the fact that the Delaware Dept of Justice was connected to the law firm it refused to prosecute (or for that fact, even name in any brief) the CA US Attorney walked into a weekly staff meeting, harangued the staff and disbanded the Public Corruption Unit as he and the AG iterated to the Press that reason for shutting down the Unit was to make the DOJ more efficient.

Funny thing though, the CA US Attorney felt it necessary to threaten career AUSA’s to keep silent or they would be retaliated upon. (please see L A Times Story {”Shake-up roils federal prosecutors”).

The Delaware Dept of Justice simply defies their oath of office, breaches their fiduciary duty and states that 34 false affidavits is not Perjury.

Woefully inept or deliberate willful blindness, the same result, America gets screwed!
http://fraud-corruption-mnat.blogtownhall.com/

Laser: I feel for your frustrations. But you must realize once the concept of intentionally killing/bombing/burning alive innocent women in children (which started at the beginning of this great moral country’s inception perhaps, with small pox in blankets) for the greater good is legitimized by the government (which employs about 25 million people), anything can be legitimized as for the greater good by those 25 million employees with a $5 Trillion budget (State and Fed). Such that they view sweeping under the carpet the malfeasance that has been purportedly inflicted upon you inconsequential as it is for the greater good of the markets or somehow the country, their view not mine. The lies and deceit for the greater good and incidental profits to the government insiders permeates through the entire 25 million employees in the government Gestapo. You have as much chance of winning against the U.S. government as my Jew relatives who the employees of Hitler tossed into the ovens. You should note the $5 Trillion is a low estimate as the Fed alone spends about $3.7 Trillion and when the states spending gets added in, government spending comprises about 40% of the nation’s approximate $14.5 Trillion GDP, which equates to a government sponsored economy and state. It will never change, ones who try, like Ron Paul, are thought of as quacks.

As a former employee of one of REFCO’s subsidiaries that left way before this mess happened, I can tell you that the place was managed by people who only cared about money, power, and control. All the senior management just cared about themselves and did little to protect the good hardworking people. Companies that are managed well have strong value propositions. Policies and oversight must be in place to ensure that schemes such as this one are prevented. Good hardworking and loyal employees need to be protected and compensated for their work.

Kafka

The axiom that the system is Too far gone was stated when our country was formed. We did not become America because we wanted to overthrow England’s rule, we became independent when the MOST powerful Nation, who also believed France was theirs, Italy was theirs and that G-d had provided what is now known as Israel as theirs.
Our Country grew out of Standing up for the Right to be FREE from Tyranny.

Law Professors tell me the system is TOO Far Gone.
BULL, then why even teach Law any more?

An FBI agent in MD said why should he expend manhours and taxpayer dollars on an investigation that will only be crap canned by the DOJ.

Then why doesn’t he Resign>

This is NEVER been about what they have done to me,

You do NOT see banter and wailing left and right about my LOST career, my lost life savings.

YOU see that I always state WE, the shareholders, the Creditors and even the POST OFFICE

All who will not stand up, because of fear of reprisal.

I put all the evidence ON LINE at Townhall and State it Under Penalty of Perjury.

They threatened to get me for defending myself and cause, as such was doing Practice of Law without a License.
As if it was a sin to act pro se.

Someone has to seek to apply the Law, as the Dept of Justice apparently is TOO Inept to comply with their Oath of Office to defend the Constitution against all enemies Foriegn and DOMESTIC.

These guys are in Stage, Finova, JoAnn’s, Levitz, Toys R US, NASDQ, NYSE and they are so strong they can force the Director of the DOJ US Trustee’s to Resign.

They forced the Director of Pres Bush Corp Fraud Task Force to resign.

The Forced the Asst US Trustee who motioned to Disgorge the Law firm to resign.

Then they forced the dismantling of the Public Corruption Unit.
—
Someone has to take a stand in the VAIN hope that we are not hell bent on destruction of America.

We either ARE a Country based on the Rule of Law or we are NOT.

Stating that the 25 million Gov machine employees accept the premise of larceny from the rest of us is ABSURD!

They are there, many honorable people, doing the right thing.

A judge supplied me the Code and the Official 18 USC 3057(a) form to give to the CA US Attorney to let them know that others were watching.

There are people who do care
The enemy is not our government employees, the enemy is US, the American people who would DARE to sit idle while our tax dollars support rogue personnel who agree with Torture or Organized Criminal behavior because a Law firm has a partner on the Circuit Court and a US Attorney.
Stand up and Fight for your American way of Life
or
LET IT GO!

Laser: I do not want to antagonize you because I truly empathize with your position (unlike most on this blog) but facts are facts and ideals are good but in the end generally turn out to be lies. The American people are generally sheep unable to control the acts of the government. The government burns innocents alive to allegedly protect the American people, that is a fact. The Bush Clan has made 100s of Billions off the deaths of 100s of thousands of innocents and one of our most valuable national treasures, mostly lower level Servicemen, about 4,000 and counting (most of them not from the families of the wealthy or the families of politicians) from a war based on lies (or being extremely generous mistakes), that is a fact. The constitution was written by a bunch of dudes who espoused freedom as a principle while at the same time they owned slaves, raped their slaves and beat the women and children while chained, that is a fact. Geez, the great forefathers who were living under the rule of law battle cry was taxation without representation and committed today what would be considered terrorist acts with the much needed support of the French; yet the tax rate back then was about 5% while today it is well over 50%, that is a fact. In fact, the approval rating of congress is about 20% and that of the liar in chief is about 25%, that sounds like taxation without representation to me. The great forefathers were also the purveyors of genocide upon the Indians and perhaps, the first on record to use WMDs when their progeny put small pox in the Indians blankets, that is a fact. The Vietnam War was started based on lies, that is a fact. Blacks were given syphilis and experimented for the long term effects to the extent they were allowed to procreate babies with congenital syph, that is a fact. The government allowed whites to skin Blacks alive, that is fact. The list of facts goes on forever and is non ending. In fact, I am a Jew and have investigated the claims of Wright and Farakan who I do not like, it does not change the fact that their assertions are correct (except the aids thing though that is impossible to confirm as some evidence does exist the U.S. was working with those types of viruses in the 70s). Even the scumbag Farakan is factually correct when he says Jewish owned ships brought the slaves to this country. The list of facts related to the U.S. government and its atrocities goes on forever. I am not saying this is a bad country or not a great country, just a brutal one based on its actions, again fact. Geez, the corruption knows no bounds, Paulson just led the Bear socialization of losses program for the rich and he personally made $20 million dollars in one day and his Wall Street buddies made 100s of million. Whatever you think, here are some more numerical facts, total debt in the U.S. $175 Trillion and total assets of $65 Trillion; yearly national budget deficit about $1 Trillion; of the total U.S. Treasury national debt of about $10 Trillion, $5 Trillion is held by foreigners; yearly trade deficit $1 Trillion; defense spending about $1 Trillion which is about 20 times more than what any other nation on the planet spends and more than double what all other countries together spend; 70% of GDP relates to consumption of services (not good); the top 5% earners pay 50% of taxes and the top 20% pay 80% of the taxes; under Bush the national deficit has gone from about 5 to 10 Trillion dollars highest rate and increase in history while at the same time the dollar has devalued by 50%…………..Again notwithstanding all this factual disastrous economic activity, the Bush Clan has made 100s of billions at the expense of the commoners (the statistics on increased wealth for the rich and decreased wealth of the middle class is mind boggling ) while the government insiders flourish. With the government approximate $3.5 Trillion bankroll per year it is ensured all levels of the government employees and their families and friends do well while the commoners ability to make a living diminishes. Personally, I have given up and make substantial profits figuring out the government and corporate lies and betting accordingly. Like your E Trade example, god bless you, but any stock with a greater than 15 to 1 current P/E ratio I would stay away from or short under the right circumstances, the CEOs, accountants and Investment Bankers (especially) are some of the biggest liars on the planet, change one assumption and billions are projected, fantasy.

Fact. It was the default of Carlyle Capital that caused the run on Bear Stearns. Bear Stearns owned 25% of Carlyle which, a week before the Bear collapse, walked away from about $10 billion of subprime related bonds that they owned. (Owned is an interesting term, considering that Carlyle was so highly leveraged that they only had a few hundred million of their own capital invested). Fact, who owns Carlyle Group - the private parent of the Public sub - - is George Bush Sr., James Baker, Arthur Levitt (simply amazing reward for selling out the SEC) and the rest of the true owners of America.

Fact. We are doomed.

GoomBah!

This is a live example of how a successful man goes insane in a matter of time. He better have not done what he had. Instead, Glyphius might be used as copywriting software for all the purposes.