Corp-Ethics.com - Report: Enron money man 'raided reserves'

Company	Enron [Company Info]
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Date	Issue	Title
27th Feb 2006	Fraud Investigation	Enron money man 'raided reserves'

Report

Enron boosted its earnings by dipping into reserve accounts, a former chief accountant at a unit of the scandal-hit energy company has testified in court.

Wesley Colwell claimed that he shifted $14m (£8m) from one account onto Enron's balance sheet so that the firm could beat Wall Street profit targets.

Prosecutors are trying to prove that Enron's former bosses manipulated accounts to boost its share price.

Mr Colwell alleged that he had twice taken $7m from a fund of $70m that was set aside to pay a contract, allowing Enron to boost its earnings per share figure to 34 cents from 32 cents.

However, Mr Colwell said that he had not been ordered to make the changes by anyone at the company. He said that it was understood to be Mr Skilling's "preference" that the earnings beat analysts' estimates.

Mr Colwell, 46, was called to the stand after striking a deal with prosecutors, and after paying $500,000 to settle civil allegations brought by the US market watchdog Securities and Exchange Commission.

"If I tell the truth and don't withhold any information, I will not be prosecuted for my crimes while at Enron," Mr Colwell told jurors on Monday.

Other Reports on Enron
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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'
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

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