The Refco scandal has derailed Old Mutual PLC's plans to buy a majority interest in the New York investment manager ForstmannLeff.
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Old Mutual Asset Management, a U.S. division of the London-based insurer, and ForstmannLeff said Tuesday that they had agreed to halt the deal, announced Oct. 5, to buy Refco Group Holdings' majority interest.
Former Refco chief executive Phillip Bennett was charged last month with criminal securities fraud for allegedly hiding a $430 million debt from his firm.
ForstmannLeff, based in New York, manages growth and domestic equity investment portfolios for retirement plans, endowments and foundations, and wealthy individuals and families. It was managing $4.7 billion at midyear.
