The U.S. Attorney's Office for the Southern District of New York charged Refco CEO Phillip R. Bennett Wednesday with securities fraud, and charges from the Securities and Exchange Commission were also said to be pending against the nation's ninth-largest futures brokerage firm.

The news came after the company's board of trustees put Bennett on indefinite leave Monday, for paying a hedge fund to hide the fact that an investment firm Bennett controlled owed Refco $430 million, The Wall Street Journal reports. However, Bennett has since reimbursed the money, the company said.

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