Robert Trosten

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Robert Trosten
Location Sarasota, FL

Robert Trosten is the former chief financial officer of Refco Inc. who left the firm prior to its IPO and was caught up in the scandal that caused the 2005 collapse of the futures and commodities broker.[1][2]

Background

Trosten and others at Refco were discovered to have transferred hundred of millions of dollars in customer and Refco losses to make it appear as debt owed to Refco by a holding company that was controlled by former Refco CEO Phillip Bennett.[3]

He received a $48 million exit package after the leveraged buyout of Refco by Thomas H. Lee Partners, which occurred before Refco went public.[4][5]

Trosten cooperated with authorities after pleading guilty to five counts including conspiracy, securities fraud and wire fraud. Trosten testified in three trials related to Refco, including those of former Refco president Tone Grant and Refco's outside lawyer Joseph Collins.[6]

Trosten received a sentence of time served with no probation for his help in the case. He was to forfeit $2.4 billion by the judge, but that was never going to be accomplished. He had faced up to 45 years in jail.[7]

As result of his felony conviction, Trosten was suspended by the U.S Securities and Exchange Commission from appearing before the regulator as an accountant.[8]

References

  1. Ex-Refco CFO turned witness avoids prison over $2.4 bln fraud. Reuters.
  2. Insiders Collected $1 Billion Before Refco Collapse. New York Times.
  3. Ex-Refco CFO turned witness avoids prison over $2.4 bln fraud. Yahoo Finance.
  4. Refco Former CFO Indicted. The Street.
  5. CFO GOT HUGE $46M PAYOUT AFTER LEE BOUGHT IN. New York Post.
  6. Ex-Refco Finance Chief Trosten Avoids Prison for Scheme. Bloomberg.
  7. REFCO REPLAY ; BENNETT’S CFO CHARGED WITH FRAUD, CONSPIRACY. New York Post.
  8. Ex-Refco CFO turned witness avoids prison over $2.4 bln fraud. Reuters.