One of the largest corporate scandals was Refco collapse. Investigations of it started in two months after it had happened. The main person that made this collapse possible, Bernett, was arrested for giving false information to the investors, commerce between states. Trading of Refco shared stopped soon after that despite the fact that Bernett’s lawyers assured public that company was going to fight. The crash of Refco happened after prices per share went extremely low and it was totally destroyed.

Soon after these events with help of federal bankruptcy court Refco stated its wiliness to stay in business. At that time Refco declared that it had about $50 billion what would be the fourth biggest bankruptcy in economics of the USA if they’d loose everything. But the company had declared that they had only $16 billion in assets and $16 more billion in liabilities. Refco group had much more steps to take and when they were about to fulfill all of them the judge who was in charge of this process has decided that all this business has to be sold to Main Financial what happened a month later.

The problem of Refco was that it ahs never had a clean reputation in society and even though the losses of the shareholders were significantly not so big it still was a huge scandal. It has to be added that it seems that neither company auditor nor the companies-satellites have known anything about corporation’s hidden debt. The company has never publicly admitted that these actions were planned. It has spent about $5 million to settle down the conflict.

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