Ad Hoc Committee of Refco F/X Customers Files Objection to Gain Capital Offer to Purchase Accounts

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In response to an offer made by Gain Capital to purchase the approximately 17,000 retail Refco F/X Accounts affected by the bankruptcy of futures trading giant Refco, the Ad Hoc Committee of Refco F/X Customers filed an objection asserting that the offer fails to meet even the minimum standards required for sale approval under current bankruptcy laws. The motion was filed in Case No. 05-60006 in US Bankruptcy Court, Southern New York District, by Attorneys Todd E. Duffy, Esq. and James E. Atkins, Esq. of Duffy and Amedeo, LLP who are representing the Committee.

On July 13, 2006, the Ad Hoc Committee of Refco F/X Customers, http://www.refcofxaccountholders.com, filed an objection to the proposed sale of the Refco F/X customer list to Gain Capital. The objection was filed in Case No. 05-60006 by its attorneys, Todd E. Duffy, Esq. and James E. Atkins, Esq. of Duffy and Amedeo, LLP, (http://www.duffyamedeo.com) in US Bankruptcy Court, Southern New York District. In its objection, the group asserts that Refco’s offer fails to meet even the minimum standards required for sale approval under the bankruptcy laws.

In a NY Post Article dated, July 13, 2006, members of the coalition scoffed at the offer as it requires them to deposit additional funds, then trade their accounts at unrealistic activity levels in order to repossess even a fraction of the funds they entrusted to Refco from their retirement or savings accounts. These 17,000 accounts have been frozen since Refco, Inc. filed for Bankruptcy protection in October of 2005. Says group spokesperson, Joe Rowan, “Its another case of the little guy being taken advantage of after being told their money was safe. This is just one in a long list of attempts by Refco and other larger financial institutions to breach the trust that was extended to all of us at the time we opened our foreign exchange trading accounts at Refco FX.”

Refco F/X Associates, LLC is a subsidiary of Refco Inc. who filed for bankruptcy on October 17, 2005, one week after the company confessed that former chief executive Phillip Bennett had hidden $430 million of bad customer debt.

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Kevin Ghezzi
http://www.refcofxaccountholders.com
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