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|16th Mar 2006||Fraud Investigation||Enron whistleblower condemns Lay|
|The executive who first raised concerns about financial malpractice at Enron said an internal investigation into accounting procedures was "bogus".
Testifying at the trial of Ken Lay and Jeffrey Skilling, Sherron Watkins said she first raised doubts about Enron's accounting methods in August 2001.
"Accounting just doesn't get that creative," she said, referring to structures used by Enron to hide debts.
Ms Watkins has become a well-known figure in the US after testifying at a Congressional hearing into Enron's collapse in 2002.
Ms Watkins testified she met Mr Lay to express concerns about financial structures managed by her boss, chief financial officer Andrew Fastow.
Ms Watkins had previously sent Mr Lay an anonymous memo questioning the use of off-balance sheet financial partnerships which were then running up huge losses.
In the memo, which she read out in court, she had expressed concerns that Enron could "implode in a wave of accounting scandals".
She added: "This was not just aggressive accounting, it was fraudulent accounting. I couldn't believe we had done it."
Ms Watkins acknowledged that, following their meeting, Mr Lay had ordered an investigation into her claims and ultimately had the off-balance sheet partnerships dissolved.
However, she said the investigation was flawed, since it was carried out by the firm's own auditors, who had approved the original transactions.
Under questioning, Ms Watkins admitted that she had sold shares worth $17,000 in 2002 after learning of the firm's financial problems and that this action was improper.
Ms Watkins left Enron in 2002 and has since collaborated on a book about the firm's bankruptcy.
During 2002's Congressional hearing, it emerged that Enron had considered sacking Ms Watkins after she raised concerns about its financial position.
|Other Reports on Enron|
|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'|
|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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