Two significant deficiencies in internal controls were disclosed by Refco in a SEC filing during August. Additionally any loss of Phillip Bennett, could cause damage to Refco's ability to manage its business.

Significant deficiency number one related to "the need to increase our existing finance department resources to be able to prepare financial statements that fully compliant with all SEC reporting guidelines on a timely basis".

Significant deficiency number two, " our lack of formalised procedures for closing our books".

An investigation by the SEC regarding Santo Maggio, President of Refco Securities was also highlighted.

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