Refco, a commodities- and futures-trading powerhouse, was ordered to pay $3.25 million to a former consultant who helped the firm raise money from private-equity titan Thomas H. Lee.
The consultant, Edward McElwreath, argued in front of a National Association of Securities Dealers arbitration panel in July and August that he helped Refco get a crucial investment from Lee. He said that his contract called for him to receive up to 1 percent of any investment. Lee wound up investing $500 million for a 57 percent stake in the broker.
Lee’s investment paid off spectacularly, almost tripling in value after the firm’s late July $2.25 billion initial public offering.