New Focus in Refco Inquiry

Another hedge fund manager is being drawn into the Refco(RFXCQ Quote) scandal.

Federal investigators and lawyers looking into the accounting fraud that led to the brokerage's collapse have been asking questions about a defunct investment fund managed by Eric M. Flanagan, called Delta Flyer Fund LLC. They want to know what role the fund might have played in an alleged scheme by ousted Refco CEO Phillip Bennett to hide bad debts at the fallen New York derivatives house, according to people familiar with the investigation and court papers in the Refco bankruptcy.

Delta Flyer was incorporated in Delaware by Flanagan in April 2000, according to corporation records. The fund was dissolved on Aug. 25, 2005, just two weeks after Refco's $583 million IPO and two months before the scandal erupted. ...