An expose of bad businesses and their unethical practices

An ex-Refco lawyer has joined the people indicted in the fraud case against that mortgage loan firm. Prosecutors say that Joseph Collins, a partner with the Chicago office of Mayer Brown LLP, was so deeply involved in the fraudulent behavior that they made the unusual move of indicting him along with the Refco emplyees already implicated in the case.

All of the indictments involve using illegal tactics to attract almost $2.5 billion in investments to Refco, once the biggest independent U.S. futures trader. The company collapsed in October, 2005, when it was learned that the firm had not acted ethically in assembling its initial public offering, or in attracting investment capital once the company was formed.

The Security and Exchange Commission has been pursuing the case for more than two years and have already indicted the Refco CEO, Phillip Bennet, and a number of other company executives. Although this fraudulent operation was smaller than the Enron debacle, there are many similarities. It is Bad Business personified.