Corp-Ethics.com - Report: Convictions in Enron fraud trial

Company	Enron [Company Info]
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Date	Issue	Title
3rd Nov 2004	Fraud Investigation	Convictions in Enron fraud trial

Report

Four former Merrill Lynch employees and an ex-Enron executive have been found guilty of fraudulently inflating the energy firm's profits.

A jury convicted ex-bankers Daniel Bayly, Robert Furst, William Fuhs and James Brown of fraud and conspiracy.

Ex-Enron finance director Dan Boyle was also found guilty. They were accused of orchestrating the bogus sale of Enron-owned electricity barges to Merrill, artificially boosting the energy firm's earnings.

Prosecutors said the deal was a loan in disguise, as the two sides had agreed to reverse the transaction later on.

A sixth defendant, former Enron accountant Sheila Kahanek, was found not guilty by the Houston jury. Those convicted face up to 15 years in prison, with sentencing due to take place at a later date.

During the trial, prosecutors said that the barge deal was an example of the kind of financial chicanery which led to Enron's collapse three years ago.

Lawyers for the defendants argued that the deal was genuine, and said that in any case, their clients were too junior to have played a significant part.

Assistant U.S. Attorney General Christopher Wray said Wednesday's verdict would serve as a warning to white collar criminals.

"Today's verdict signals that executives committing corporate fraud will be vigorously investigated and prosecuted. Those who aid such fraud will meet the same fate," he said.

Enron went bankrupt in December 2001 after it emerged that the company had hidden hundreds of millions of dollars in debt through a series of complex financial transactions.

The demise of Enron, a highly respected energy trading firm, dented investor confidence in corporate America, and sent shock waves through the financial markets.

Since Enron's collapse, the company's former chief financial officer, Andrew Fastow, has pleaded guilty to fraud and is helping prosecutors with their inquiries.

Former chairman Ken Lay and former chief executive officer Jeffrey Skilling are also facing multiple criminal charges.

Other Reports on Enron
Date	Issue	Company	Report
26th Sep 2006	Fraud Investigation	Enron	Fastow gets six-year term
13th Aug 2006	Fraud Investigation	Enron	Prosecutors raise Enron boss fine
25th May 2006	Fraud Investigation	Enron	Lay and Skilling guilty
15th May 2006	Fraud Investigation	Enron	Enron bosses 'stole to pump egos'
11th May 2006	Fraud Investigation	Enron	Judge deals blow to Enron accused
26th Apr 2006	Fraud Investigation	Enron	Enron feared witch hunt, Lay says
24th Apr 2006	Fraud Investigation	Enron	Lay 'devastated' by Enron failure
18th Apr 2006	Fraud Investigation	Enron	Skilling defends Enron share sale
13th Apr 2006	Fraud Investigation	Enron	Skilling slams Enron prosecutors
12th Apr 2006	Fraud Investigation	Enron	Enron 'held no cookie jar fund'
11th Apr 2006	Questionable Practice	Enron	Skilling denies cover-up at Enron
10th Apr 2006	Fraud Investigation	Enron	I'm innocent says ex-Enron chief
3rd Apr 2006	Fraud Investigation	Enron	Key Enron witness 'lied in court'
22nd Mar 2006	Fraud Investigation	Enron	Enron treasurer tells of 'lies'
16th Mar 2006	Fraud Investigation	Enron	Enron whistleblower condemns Lay
14th Mar 2006	Fraud Investigation	Enron	Key Enron witness 'duped bosses'
9th Mar 2006	Fraud Investigation	Enron	Lay 'lied about Enron finances'
7th Mar 2006	Fraud Investigation	Enron	Enron bosses hid massive losses
1st Mar 2006	Fraud Investigation	Enron	Enron 'pretty fast and loose with its rules'
27th Feb 2006	Fraud Investigation	Enron	Enron money man 'raided reserves'
13th May 2005	Fraud Investigation	Enron	Former Enron executive sentenced
9th Jan 2005	Fraud Investigation	Enron	Enron bosses agree $168m payout
28th Jun 2004	Other Issue	Enron	Enron ex-boss breaks his silence

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