NEW YORK - Phillip Bennett, the former head of Refco Inc who was accused of orchestrating a fraud that led to the demise of the commodities broker, has reached a settlement with the U.S. Securities and Exchange Commission, according to court documents.
The SEC's complaint had alleged that Bennett inflated Refco's revenues through various means, including recording fictitious interest income and income from sham foreign exchange transactions.
Bennett did not admit or deny the allegations in the SEC's civil complaint and waived the right to appeal the final judgment, which prohibits him from acting as a officer or director of a public company.
The SEC had asked Bennett to return "unjust enrichment" that he received as a result of his actions, but the settlement did not mention or specify any financial agreements, according to the documents filed in U.S. District Court in Manhattan on Tuesday and signed by Judge Gerard Lynch.
Bennett had built Refco into a global commodities trading empire only to see it unravel in 2005 after the company disclosed an accounting deception.
In February, the former chief executive pleaded guilty to 20 counts of fraud, conspiracy, money laundering and lying to auditors and others.
Bennett was sentenced on July 3 to 16 years in prison for fleecing investors of more than $2.4 billion in a fraud that destroyed the world's largest independent commodities broker.
Refco filed for bankruptcy in 2005.
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