Reply #17: Refco Slams Rogers Over $362M Claim

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http://www.nypost.com/business/56685.htm

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November 2, 2005 -- Bankrupt trading firm Refco Inc. struck back at hedge fund pioneer Jim Rogers yesterday, claiming two funds he partially controls approved the transfer of $362 million in assets to a unit now under Chapter 11 protection.

The Rogers funds "authorized the transfer of certain assets into their new accounts at Refco CM and did so with their eyes wide open," Refco said in bankruptcy court filing late Monday.

The crumbled commodities firm said the Rogers Funds are "acting deceitfully by making knowingly false allegations in this litigation and seek to be unjustly enriched by trying to deprive Refco CM's estate of substantial assets that properly should be available for the benefit of all Refco CM creditors."

Rogers' firm, Beeland Management Co., sued Refco last week claiming the futures broker fraudulently cut off access to $340 million in government securities and $22 million in cash by improperly moving those assets. Although he is semi-retired, Rogers owns a large stake in Beeland, which manages the funds that filed suit against Refco, the Rogers Raw Materials Fund and the Rogers International Commodities Fund.

Without the assets, the funds can't meet potential margin calls on other securities, and investors in the funds may not be able to cash out at the end of the month, the suit said.

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