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In Forex trading we would never make a mistake and cause small and large losses in the Demo or Real Account. We introduce to you about two people who cause harm to a large bank in Austria, Bank für Arbeit und Wirtschaft AG (BAWAG). The loss was due to foreign exchange transactions. Both men are Flöttl Wolfgang and Helmut Elsner. Total losses caused by them amounted to 1.4 billion Euros (equivalent to $ 1.97 billion today - 2008). This event is known by the Refco scandal or BAWAG Scandal.

BAWAG Profile
Bank für Arbeit und Wirtschaft is a bank in Vienna, Austria with the mission as a bank serving the Commercial banking, Investment banking, private banking and asset protection clients. Established in 1922 and on October 1, 2005, the bank's merger with investment institutions Österreichische Postsparkasse (PSK) and the name was changed to "Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse AG", abbreviated to BAWAG PSK Actually a majority stake Österreichische Postsparkasse (PSK) has been controlled by BAWAG. But only in the year 2005 the merger occurs.

BAWAG scandal nearly ruined by Refco in 2005 with the existence of bad debts amounting to 425 million, giro and ditotal bonds amounting to 1.4 billion Euros for Forex transactions. People who are related to internal party named Wolfgang and Helmut Elsner Flöttl.

Unable to survive because of the large losses that the U.S. investment firm Cerberus Capital Management bought BAWAG with funds amounting to 3.2 billion pounds.
 
Refco Profile
Refco is a futures brokerage firm that includes forex trading, indexes and commodities. Founded in 1969 under the name "Ray E. Friedman and Co.." or shortened by Refco. In 2005, Refco transaction volume reached $ 4 billion in 2005, with customer numbers reaching 200 thousand people. Refco also included in the list of brokers in the Chicago Mercantile Exchange

Wolfgang scandal Flotti&Helmut Elsner
elsner.jpg
 
Financial scandal began on October 10, 2005 where the CEO (Chief Executive Officer) and concurrent leader Refco, Phillip R. Bennett hid $ 430 million funds for unbeknownst to investors and auditors. In April 2006 Bennett crimes known to the customer file from Bawag PSK Group (a member of the investment firm / hedge fund Liberty Corner Capital Strategy, Refco place to borrow money.) Bennett can be concluded to borrow money to BAWAG. Bennett handed the money $ 430 million to investment firm Ross Capital.
 

flotll.jpg Wolfgang Flottl was a trader at Capital that mentradingkan Ross Bennett funds which amounted to $ 430 million. Before the public know the embezzlement of funds by Bennett, so Bennett borrow money again for 350 million Euros to the BAWAG to close the fund amounted to $ 430 million. BAWAG internal party which approved loan limit is Helmut Elsner Bennett. Problems began when the investment made by Wolfgang losers. This is where the complicated process of happening. Finally, the Austrian Central Bank and Financial Market Authority, the body knows there is something wrong and investigate BAWAG's involvement with Refco.
 
Bennett eventually arrested and required to pay all its debts. Overall Bennett, Wolgang, and General Director of BAWAG Helmut Elsner was arrested authorities.

For committing acts detrimental to speculation and fraud that the bank BAWAG (4th largest bank in Austria), in the end (derived from AustriaTimes) Helmut Elsner and Wolfgang Flotti each sued for 09.05 years and 2.5 years in prison.

BAWAG bank scandal would eventually bring the total nine people were prosecuted into custody. The huge losses experienced by BAWAG result in this company sell to Cerberus Capital Management LP in 2007.

Here is the error made by his prison sentence Elsner which resulted in quite severe:
1. Helmut Elsner banks lend funds to the U.S. futures at Refco Inc., which was in the bankruptcy.
2. Helmut Elsner also plead guilty has been lending money to Wolfgang Flotti because lending is based on risk and without liability. More than that, Elsner also did not disclose the amount of money lent after the fund had loaned it out, since the act of speculation. He was also found guilty of receiving bonuses and retirement benefits that should not have received if from the beginning he has caused substantial losses.

While for Wolfgang Flotti not described in detail the action he did. However, as a hedge fund manager, he is being prosecuted for the actions of an improper use of funds, fraud, and deception in reporting.

However, despite all that, according AustrianTimes, Wolfgang and Helmut Elsner Flotti still have the right to request review of their case.