More charges in collapse of futures broker Refco

U.S. prosecutors indicted a third man linked to alleged fraud leading to the downfall of futures broker Refco Inc. and added charges in its indictment against two others Tuesday.

Refco filed for bankruptcy protection in October 2005, just months after its initial public offering, after disclosing that then-Chief Executive Phillip Bennett had hidden $430 million of bad customer debt.

The U.S. attorney for the Southern District of New York filed an indictment against Tone Grant, 62, a former president of Refco, and expanded charges against Bennett and former Chief Financial Officer Robert Trosten, 37. The three face multiple counts of bank, wire and securities fraud, conspiracy and money laundering.

Grant’s lawyer, Norm Eisen, said his client “is innocent and will vigorously fight these charges.” Robert Morvillo, a lawyer for Trosten, said his client intended to contest the charges. Bennett’s lawyer was not available for comment.