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The trustee overseeing liquidation of Refco Capital Markets filed two more lawsuits in the latest legal shot to recover millions of dollars from Refco’s former auditors, Grant Thornton, and a private equity firm and its director, Thomas H. Lee. The latest filings in federal court in New York this week add to the stack of litigation, including an August Illinois state lawsuit against law firm Mayer Brown, Rowe & Maw; Grant Thornton, Ernst & Young, PricewaterhouseCoopers, Credit Suisse Securities, Banc of America, Deutsche Bank Securities and other Refco insiders. The Cook County lawsuit seeks over $2 billion in damages and penalties for alleged breach of fiduciary duty, fraud, malpractice and aiding a fraud. The two new lawsuits were filed Oct. 9 by two Refco Litigation Trusts, created in 2006 to pursue Refco bankruptcy estate claims. They were filed in the Southern District of New York seeks hundreds of millions of dollars. Refco Inc., a futures and commodities dealer, collapsed in Oct. 2005 just a week after it was disclosed that its CEO Philip Bennett had carried certain debt deals on the company books as loans. The company descended into bankruptcy. The New York lawsuits assert that Boston’s Thomas H. Lee Partners, which handled the Refco initial public stock offering, as well as Chicago auditors Grant Thornton, were aware, or should have known, of a fraudulent scheme by former Refco executives to sell bonds and other securities that they were entrusted to hold for customers. “The allegations contained in these latest complaints filed by six creditors of Refco Capital Management essentially track a previously dismissed class action and are misdirected and entirely without merit,” according to a statement provided by THL Partners. THL Partners filed its own lawsuits in July and August against Grant Thornton and the Mayer Brown firm in New York federal court and New York state court alleging the auditor and lawyers failed to disclose allegedly fraudulent loans that led to Refco’s collapse. The latest suits by Refco creditors assert the amount allegedly stolen from the customer accounts “dwarfed Refco’s total capital,” Capital Management Select Fund v. Bennett, 07-cv-8688. The New York lawsuits allege breach of fiduciary duty, unjust enrichment and fraudulent conveyances.

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