Corp-Ethics Home
Log In | Register New User
Home Company Search Related Articles Forum (new!)

Company Enron [Company Info]
  Track this Company (an email will be sent to you everytime a report is filed about this company)

Date Issue Title
7th Mar 2006 Fraud Investigation Enron bosses hid massive losses

Report
Enron's former chief financial officer has testified to setting up partnerships designed to help the firm hide losses of millions of dollars.

Andrew Fastow took the witness stand at the trial of ex-Enron bosses Jeffrey Skilling and Ken Lay.

The two deny multiple charges of conspiracy, fraud and insider trading linked to the collapse of the US energy firm in December 2001.

Mr Fastow has already pleaded guilty to conspiracy and faces 10 years in jail.

His intimate knowledge of Enron's finances make him a key witness for the prosecution.

Mr Fastow said the "LJM" partnerships - the initials are those of his wife and children - were used to buy poorly performing investments from Enron and disguise losses from investors and analysts.

"We were doing this to inflate our earnings, and I don't think we wanted to show people what we were doing," he told the court.

He said Mr Lay and Mr Skilling signed off the deals and encouraged his activities.

He described how Mr Skilling urged him to use one of the partnerships to buy a minority stake in a Brazilian power plant owned by Enron because Enron's South American unit was struggling to meet its earnings target.

Mr Fastow was rewarded with lucrative fees for handling the partnerships, but he said money was not his only motivation.

"I would look like a hero," he said, for helping Enron executives "make income targets Wall Street was setting".

Mr Lay and Mr Skilling have denied they took part in any crimes and blame Mr Fastow for Enron's collapse.

Their defence team maintains that many of the former Enron employees that have come forward as prosecution witnesses have confessed to crimes they did not commit, in the hope of getting reduced prison sentences.

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'
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
3rd Nov 2004 Fraud Investigation Enron Convictions in Enron fraud trial
28th Jun 2004 Other Issue Enron Enron ex-boss breaks his silence

Related Reports from the Utilities Industry
Company Issue Report
Powergen Questionable Practice Powergen fined over unfair policy
Thames Water Other Issue Ofwat to fine Thames Water 12m
British Gas Questionable Practice British Gas staff mis-sold deals, says regulator Ofgem
Westar Energy Fraud Investigation Ex-Westar CEO Wittig Gets 18-Year Sentence
Severn Trent Water Fraud Investigation Ex-Severn bosses face fraud questions
 
Contact Us | Terms of Service | Privacy Policy | Add Report | Links
© 2006 Corp-Ethics.com | Corporate Ethics