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SEC: Refco units’ transactions restricted

October 14, 2005

WASHINGTON (Reuters) – The U.S. Securities and Exchange
Commission said on Friday that it has placed restrictions on
two Refco Inc. units’ ability to make withdrawals of equity
capital or unsecured loans or advances.

The SEC said Refco Securities LLC and Refco Clearing LLC
are limited for 20 business days from making transactions if
the total, aggregated with other similar transactions, exceeds
30 percent of the firm’s “excess net capital” during a
30-calendar-day period.

Refco’s former chief executive Phillip Bennett was charged
on Wednesday with securities fraud over hundreds of millions of
dollars owed to the company by an entity he controlled.




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