Founded in 1969 as Ray E. Friedman and Co., Refco grew into one of the world's largest futures brokerages. The company provided execution and clearing services for exchange-traded derivatives, as well as prime brokerage in the cash and fixed income markets. After a successful IPO in August 2005, the company spectacularly collapsed just two months later in October 2005. It was discovered that its CEO had hidden approximately $430 million in bad debt through fraudulent off-balance-sheet transactions. This revelation led to criminal charges, a complete loss of market confidence, and a swift filing for Chapter 11 bankruptcy protection, making it one of the most infamous corporate scandals of the early 21st century. Its viable assets were subsequently sold off to other firms.

Founded in

United States