SOURCE: Shalov Stone & Bonner LLP

October 23, 2005 15:16 ET

Refco, Inc. Class Action Investigation Expanded by Shalov Stone & Bonner LLP to Include Austria's Fourth-Largest Bank Group

NEW YORK, NY -- (MARKET WIRE) -- October 23, 2005 -- Shalov Stone & Bonner LLP, which recently filed a securities class action on behalf of purchasers of Refco, Inc. (NYSE: RFX) securities, today announced that it is expanding its investigation into the alleged securities fraud at Refco to include Bawag P.S.K. Group (and related parties), Austria's fourth-largest bank group. If you purchased Refco stock or bonds (CUSIP No. 75866HAC1), you are encouraged to contact Shalov Stone & Bonner LLP to discuss your legal rights at no cost to you.

Earlier this month, just eight weeks after its initial public offering, Refco announced that Phillip R. Bennett, its Chief Executive Officer and controlling shareholder, was being placed on a leave of absence and that the company had discovered -- ostensibly through an internal review -- a receivable of $430 million owed by Bennett to the company. The company also announced that, based on the undisclosed related party transactions, its prior financial statements should not be relied upon.

On October 5, 2005, Bennett asked Bawag for a EUR 350 million ($419 million) loan, and offered his thirty-four percent stake in Refco as collateral, according to Guenter Weninger, Bawag's Supervisory Board Chairman. Days later Bawag agreed to lend the money, which was then used to pay down the wrongfully concealed $430 million receivable. Austria's deputy chancellor, Hubert Gorbach, has recently called for Bawag to be officially investigated and promised "consequences for the management." Additionally, Austrian financial watchdog group FMA has launched a probe into Bawag's involvement with Refco.

Shalov Stone & Bonner LLP has extensive experience in the prosecution of class actions on behalf of investors. For more information about the firm and the Refco litigation, please visit Shalov Stone & Bonner LLP's website dedicated exclusively to the Refco class action:

If you would like to discuss your legal rights, please contact Thomas G. Ciarlone, Jr., at Shalov Stone & Bonner LLP, 485 Seventh Avenue, Suite 1000, New York, New York 10018 (telephone: (212) 239-4340; e-mail:

Contact Information