Liberty Corner Capital Sued in Refco Investor Lawsuit Filed by Shalov Stone & Bonner LLP

16 October 2005

Shalov Stone & Bonner LLP commenced a
securities class action on behalf of purchasers of the securities of Refco,
Inc. (NYSE: RFX), in the period between August 10, 2005, and October 7,
2005.

While several other law firms have recently filed class action lawsuits
against Refco, it is believed that Shalov Stone & Bonner LLP has brought
the only case naming as a defendant Liberty Corner Capital, a New
Jersey-based hedge fund. According to the complaint, Phillip R. Bennett
-- the company's Chief Executive Officer and Chairman during the relevant
time period -- used a Liberty Corner fund, with the fund's consent, to
periodically certify to Refco's outside auditors that the hedge fund was
responsible for one or more trades and associated losses that actually
belonged to Bennett himself. As a result, Liberty Corner was a willing and
direct participant in a scheme to deceive investors by fraudulently
misrepresenting financial information for the purpose of misleading
investors

Highlighted Links

Refco Class Action WebsiteShalov Stone & Bonner Website

The complaint further alleges, among other things, that -- just two months
after its initial public offering -- Refco announced that Bennett was being
placed on a leave of absence and that the company had discovered
(ostensibly through an internal review) a receivable of $430 million owed
by Bennett to the company. The company also revealed that, based on the
undisclosed related party transaction, its prior financial statements
should not be relied upon.

Plaintiffs are represented by the law firm of Shalov Stone & Bonner LLP,
which has extensive experience in the prosecution of class actions on
behalf of investors. For more information about the firm and the Refco
litigation, please visit Shalov Stone & Bonner LLP's new website dedicated
exclusively to the Refco class action: www.refcoclassaction.com

If you would like additional information, please contact Thomas G.
Ciarlone, Jr., at Shalov Stone & Bonner LLP, 485 Seventh Avenue, Suite
1000, New York, New York 10018 (telephone: (212) 239-4340; e-mail:
tciarlone@lawssb.com).

CONTACT:
Thomas G. Ciarlone, Jr.
SHALOV STONE & BONNER LLP
Telephone: (212) 239-4340
Facsimile: (212) 239-4310
Email Contact
http://www.lawssb.com
SOURCE: Shalov Stone & Bonner LLP