Refco Inc., one of the nation’s largest futures brokerage firms, denied Monday that it is the subject of any criminal investigation for dealings with Jay Goldinger, a Beverly Hills money manager who has been accused of losing at least $40 million through unauthorized trading.
The Wall Street Journal reported that the FBI, Securities and Exchange Commission and Commodity Futures Trading Commission were investigating whether Chicago-based Refco knew about or was involved in alleged mingling of customers’ accounts at Capital Insight, Goldinger’s now-defunct firm.
“Refco has not received any criminal subpoena or even an informal request from any criminal law enforcement authority,” the company said in a statement. “There has been no indication that Refco is even under the threat of criminal investigation.”
Refco said its dealings with Capital Insight included execution and clearing of certain futures and options trades, adding, “Refco never had trading discretion over Capital Insight’s accounts nor made any trading decisions for Capital Insight’s clients.”
Ft. Worth-based Pier 1 Imports Inc., which reported a $19.3 million futures trading loss from Goldinger dealings, alleged in a suit filed in Texas last month that Refco illegally permitted Goldinger to combine money from separate accounts into a single account. Refco at the time called the suit “preposterous.”
On Monday, Refco attorney Joseph Collins said the suit has not yet been answered.
