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

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

Date Issue Title
3rd Nov 2004 Fraud Investigation Convictions in Enron fraud trial

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.

Other Reports on Merrill Lynch
Date Issue Company Report
18th Aug 2008 Questionable Practice Merrill Lynch Lawsuit threat to Merrill Lynch

Related Reports from the Financial Industry
Company Issue Report
FleetBoston Fraud Investigation Fleet Boston agrees to pay fines
KPMG Fraud Investigation KPMG Partner Pleads Guilty In Tax Shelter Case
JP Morgan Chase Other Issue JPMorgan to pay $425m in IPO lawsuit
KPMG Other Issue KPMG to pay undisclosed amount to settle lawsuit
Refco Fraud Investigation Refco boss facing Austrian arrest
Contact Us | Terms of Service | Privacy Policy | Add Report | Links
© 2006 | Corporate Ethics