The NYLJ’s Anthony Lin reports:

"The private equity firm that owned a controlling interest in failed commodities brokerage Refco Inc. has filed a $245 million lawsuit against Mayer, Brown, Rowe & Maw, accusing the law firm of helping to conceal the sham transactions that led to Refco’s collapse.

Boston-based buyout firm Thomas H. Lee Partners filed a 50-page complaint against Mayer Brown Thursday in federal court in Manhattan (07 Civ. 6767). In the suit, Lee said Mayer Brown handled 17 fraudulent transactions at the behest of Refco’s executives between 2000 and 2005.

"These sham transactions . . . were designed to defraud potential purchasers (such as Plaintiffs), lenders, and potential lenders by concealing Refco’s true financial condition," the complaint states.

One of the nation’s best-known private equity firms, Lee acquired its controlling stake in Refco in August 2004. The deal appeared to be a major success when Refco’s value soared in an August 2005 initial public offering. But the company’s stock collapsed in October 2005 when the executives’ activities came to light. The company filed for bankruptcy days later.

Lee is seeking at least $245 million on claims of securities fraud, common law fraud and negligent misrepresentation. Lee is also charging violation of the Racketeer Influenced and Corrupt Organization Act. A successful RICO claim would entitle Lee to treble damages.

Mayer Brown is being defended by John Villa of Washington, D.C.’s Williams & Connolly. In a statement Mr. Villa denied the allegations. "