Refco Says It Is the Target of Probes

Refco Inc., one of the world’s biggest commodities brokerages, said Tuesday it was cooperating with multiple investigations by regulators into its financial reports following the ouster of its chief executive.

Refco also said in a news release that a $430-million debt to the company owed by a firm controlled by the ousted chairman and chief executive, Phillip R. Bennett, was hidden through secret transfers to an unnamed customer account.

The company, which became publicly traded in August, disclosed Monday that it would have to restate its earnings back to 2002 and would delay filing its next quarterly report, originally scheduled for next week. Bennett -- who was said to have repaid the $430 million with interest Monday -- was put on leave that day by Refco’s board, and a successor was named.

In its announcement Tuesday, New York-based Refco said it had voluntarily contacted the Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, the New York Stock Exchange and other regulators, and was cooperating with their inquiries.

Refco also said that it had sufficient cash to continue to operate.

The company, with some 2,400 employees in 14 countries, reported earnings of $176.3 million for the fiscal year ended last February, down from $187.2 million a year earlier.

Refco shares fell another 11.2%, or $1.75, on Tuesday, to $13.85. The stock lost 45% of its value Monday after news of the debt was reported.

Because of Monday’s sharp decline and on the basis of contacts with the company, the NYSE halted trading in Refco stock at Tuesday’s opening bell “to evaluate further news from the company,” said Scott Peterson, the exchange spokesman. The stock reopened for trading in the afternoon after the company issued its news release.