Hedge Funds

Liberty Corner not a target in Refco probe

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Liberty Corner Capital Strategies, a Summit, N.J., hedge fund firm reportedly involved in a series of loan transactions with the giant commodities broker Refco, said on Thursday that it had been advised by the U.S. Attorney’s office that neither the firm nor its principal, William Terrence Pigott, are targets of the Refco criminal investigation.

Refco’s ex-CEO, Phillip Bennett, was arrested on October 12 and charged with securities fraud. Specifically, Bennett was accused of hiding $430 million in uncollectable debt, thus falsely propping up Refco’s earnings and share price. Refco went public on the New York Stock Exchange in August.