Robert Trosten, Refco’s former chief financial officer, is the third Refco executive to plead guilty to charges of fraud and conspiracy, following the examples of Phillip Bennett, former CEO, and Santo Maggio, former executive VP. The Washington Post is reporting that Trosten is cooperating with prosecutors and faces up to 30 years in prison for bank fraud and 20 years for securities- and wire-fraud.
Tone Grant, former Refco president and Joseph Collins, of law firm Mayer Brown and Refco’s former outside counsel, are maintaining that they are not guilty and will stand trial.
