Deserting the sinking ship? A group of Chicago-based former Refco brokers have settled on charges of leaving the company with onfidential documents in-hand and poaching Refco clients insinuating an impending decline in service from Refco. Wonder what they could have been referring to? Via Cattlenetwork.com:

Ex-Refco Brokers Who Allegedly Poached Clients Settle Suit

Joseph Rebello
Dow Jones Newswires
March 22, 2006

A group of former Refco Inc. (RFXCQ) brokers moved to settle a lawsuit that accused them of defecting to a rival firm and poaching Refco's customers as the company was collapsing last October.

The eight brokers, all based in Chicago, pledged to return confidential documents allegedly taken from Refco's flagship business and to restrict the solicitation of former Refco customers, according to a proposed settlement filed with the U.S. Bankruptcy Court in Manhattan.

The lawsuit against the brokers was filed by the court-appointed administrator of Refco's former flagship unit, Refco LLC. It contended the brokers decamped with secret Refco customer lists just days after the company was engulfed by an accounting scandal.

Some of the brokers, the lawsuit said, then began calling Refco customers and urging them to transfer their business to the rival firm, Brewer Futures Group LLC. The pitch consisted of dire warnings about Refco's future, such as "Refco is going under," and "The level of service at Refco will decline. Service will be better at Brewer"...

More here.

-- MDT

Labels: Refco