RFX Refco Inc.

Accounting Fraud Allegedly Rears Its Ugly Head At Another Corporation COLCHESTER, Conn., Oct. 15 /PRNewswire/ -- Scott + Scott, LLC (http://www.scott-scott.com/) continues to be at the forefront of litigation on behalf of Refco, Inc. ("Refco") (NYSE:RFX) investors. For more information, call 619/251-0887. Scott + Scott was retained on October 11, 2005 by an institutional investor and it filed on its behalf the next day. The firm represents investors in a securities class action against Refco and certain of its officers, directors and the underwriters Credit Suisse First Boston, LLC and Goldman, Sachs & Company in the United States District Court for the Southern District of New York (Case No. 05-Civ-8663). Further, hedge fund Liberty Corner Capital has now been sued as well. Persons who purchased Refco securities between August 11, 2005 and October 10, 2005, inclusive (the "Class Period") are putative class members, but any shareholder may contact the firm. A complete description of the allegations may be reviewed at http://biz.yahoo.com/prnews/051012/nyw069.html?.v=44. If you wish to discuss this action or have questions concerning your rights as a class member, please contact Scott + Scott's Connecticut office at (800/404-7770) before noon on the East Coast. Thereafter, you can contact Scott + Scott partner Neil Rothstein at (800/332-2259, cell 619/251-0887 or ). Scott + Scott will provide class members with case materials, answer all questions regarding participation and rights and assist with other services the firm provides. There is no cost or fee to class members. The plaintiff is represented by Scott + Scott, LLC, which has significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities. Refco's former CEO Phillip R. Bennett was arrested and charged formally on October 12, 2005 for hiding up to $545 million in bad debts. According to the Associated Press, "[a] day earlier, Refco announced that $430 million in debts to the company, funneled through a firm controlled by the ousted chairman and chief executive, was hidden through a number of secret transfers to disguise that much of the debt may have been uncollectible." Bennett, called a flight risk in court on Wednesday, is a British citizen with a half billion dollars in assets. According to news sources, Bennett reportedly told a colleague in a taped conversation Monday that he was going to Europe within two days. U.S. Magistrate Judge Douglas F. Eaton granted bail, saying he could go free Wednesday after pledging a Manhattan apartment and his New Jersey home as collateral and agreeing to electronic monitoring and a $50 million bond with $5 million in cash. Today Standard & Poor, the credit rating agency, stated that Refco's situation was likely to cause the Company to default on its debt payments. Scott + Scott's complaint alleges that during the Class Period, Refco and certain of its officers and directors violated provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, causing investors to purchase stock pursuant to registration statements containing materially false and misleading statements. Refco's stock has continued its precipitous decline, closing recently at $7.90, more than 70% lower than last Friday's price of $28.56. Thursday, the stock was halted from trading and remained so through the end of Friday. Commodities broker Refco Inc., said Thursday it will freeze customers' accounts in one of its subsidiaries for 15 days because the unit may not have enough cash on hand to operate normally. That unit is Refco Capital Markets. Refco stock was trading at $7.90 when trading was halted. Scott + Scott's investigation has partly focused on Refco stock trading patterns. Scott + Scott's original complaint extends the class period to October 10, 2005. On October 11, 2005, the firm filed an original complaint on behalf of its clients. This complaint differs from the one filed just hours before. Scott + Scott, LLC prides itself on being one of the few firms of its type that crafts original complaints. Recently, Scott + Scott has filed many new, original securities complaints for its clients against companies who have allegedly committed the most serious fraud. These include: Mercury Interactive, DHB industries, Boston Scientific, Guidant, Harley-Davidson, Doral Financial, Investors Financial Services Corp., Cyberonics and more. The firm is currently lead counsel in securities and ERISA/pension cases against Commerce Bancorp of New Jersey, priceline.co, Conagra, General Motors, Halliburton, Netflix and more. Scott + Scott, LLC is a firm dedicated to client contact and satisfaction, adherence to the rules of law and the court and respect for those we work for who have suffered during a time of a changing economy. This is what has made Scott +Scott, LLC one of the leading firms specializing in securities fraud, pension benefits and antitrust. Its clients come from throughout the world. DATASOURCE: Scott + Scott, LLC CONTACT: Scott + Scott's Connecticut office, 1-800-404-7770, or Neil Rothstein, Scott + Scott partner, 1-800-332-2259, cell: +1-619-251-0887, Web site: http://www.scott-scott.com/

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