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Company Enron [Company Info]
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Date Issue Title
22nd Mar 2006 Fraud Investigation Enron treasurer tells of 'lies'

Report
Former Enron executives lied to investors about its financial state because they knew the truth would destroy the company, a court has heard.

Testifying at the trial of Ken Lay and Jeffrey Skilling, former Treasurer Ben Glisan Jr said his bosses were full aware of the firm's growing debt.

He said Mr Lay asked him about managing the firm's accounts in 2001 to avoid a cut in Enron's credit rating.

Glisan Jr is the only former Enron executive currently in jail.

"By the summer of 2001 we had mounting debt, our balance sheet was well levered, we had a great deal of debt to carry for the credit rating we had, we were not generating much cash flow," said Glisan.

A credit downgrade would have been disastrous for Enron because it borrowed heavily to finance its energy trading operations and to pay for its failing operations, he said.

Enron collapsed into bankruptcy in December 2001 after disclosures that it falsified accounts to hide debt and inflate profits.

Founder Kenneth Lay faces seven charges over accounting irregularities along with former Enron chief executive Jeffrey Skilling.

Glisan went to prison in 2003 after pleading guilty to a conspiracy charge in exchange for a five-year sentence.

Mr Lay and Mr Skilling face multiple charges of defrauding investors, but have pleaded not guilty, blaming Enron's collapse on what they call rogue employees such has Glisan and former chief executive officer Andrew Fastow.

Mr Fastow has already testified to setting up partnerships designed to help the firm hide losses of millions of dollars.

Earlier this month, Mr Fastow pleaded guilty to conspiracy and is facing 10 years in jail.

Prosecutors have said they are nearing the end of their case in the trial which has, so far, lasted eight weeks.

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'
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
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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