The day after hedge-fund fraudster Sam Israel III gave himself up to authorities, another one of the dubious dodgers of corporate America was sentenced for his fraudulent dastardly doings. Phillip Bennett, former CEO of Refco, was sentenced to 16 years in prison on July 3. He had pled guilty in February to 20 counts of fraud, conspiracy, money laundering and lying to auditors.
That's it. For bringing down a financial institution, he only got 16 years. Money lost due to his scheme: $2.4 billion.
Let's compare that to some other white color criminal sentencing:
Although Refco officer Tone Grant also was found guilty, he's not being sentenced until early August and further, he didn't plead out his case. He could face 85 years. Money lost due to his (et al) scheme: $2.4 billion
Recently on the lam hedge fund fraudster Sam Israel III will spend 20 years in jail, with another 10 possibly tacked on for his little fugitive drama. Money investors were out due to his scheme: $400 million.
Let's move onto to more illustrious types:
Jeff Skilling, former CEO of Enron, got 24 years and four months in prison, which he is currently serving. Enron was a multi billion dollar energy empire that opened up the markets to new financial methods as well as was responsible for putting Californians (including Grandma Tillie) in the dark due to manipulation of the electricity markets. The malfeasance caused the largest U.S. bankruptcy in history. He actually made out better than his mentor Ken Lay, who died before he could be sentenced.
Bernard Ebbers, former CEO of WorldCom, was convicted of a massive fraud and sentenced to 25 years in federal prison. Money lost to investors: $11 billion.
Dennis Kozlowski, former Tyco CEO, sentenced to 25 years in a state prison for looting millions from his company.
So why did Bennett get only 16 years? Perhaps working with the government does help, as I'm sure we'll see with the Tone Grant sentencing in August.