Refco ex-pres in soapy bubble

Tone N. Grant, Refco Inc.'s former president, was convicted of securities fraud and other criminal charges at the U.S. District Court in Manhattan in a scheme to hide the commodities broker's financial troubles.

In its second day of deliberations, a jury of six women and six men found Mr. Grant guilty of conspiracy, securities fraud, wire fraud, bank fraud and money laundering. Mr. Grant, 64 years old, and his lawyers declined to comment. Mr. Grant, who is scheduled to be sentenced Aug. 7, could face life in prison on the charges.

The conviction comes nearly two months after former Refco Chief Executive Phillip R. Bennett and Robert C. Trosten, the company's ex-chief financial officer, pleaded guilty to criminal charges in the matter. Mr. Bennett is expected to be sentenced next month.

Prosecutors had alleged that Messrs. Bennett, Trosten, Grant and others at Refco schemed to hide the commodity broker's true financial health from its banks, auditors and investors from the mid-1990s to about October 2005. The firm's troubles included hundreds of millions of dollars in trading losses sustained by the commodities broker and by customers trading through its accounts.

Refco sought bankruptcy protection in 2005, shortly after the company announced it had discovered $430 million in debt owed to a private entity controlled by Mr. Bennett.