And a good morning to you
This is turning into the month of the scoundrels for me.
I watched 'Enron, the smartest guys in the World' last night. Good documentary covering the Enron collapse. What is interesting is the connection between the Enron trading scandals, the rolling blackouts in CA a few years ago, and the election of Arnold Schwarzenegger as Governor. Highly recommend either the movie or the book.
A bit of followup. Kenneth Lay, former Chairman, died in 2006 while awaiting sentencing after he was convicted of 10 different accounts. So, no jail time for him. However, whatever profits he gained from Enron it is believed that he spent most of them on lawyers defending himself.
Jeffrey Skilling, former CEO, is currently serving a 24 year sentence in prision for a laundry list of things. However, according to the entry in Wikipedia, January 6, 2009, the United States Court of Appeals for the Fifth Circuit affirmed Skilling's conviction, but vacated the sentence and remanded for resentencing.
So, we'll see what the new sentencing doles out. If it's 'time served' that is going to be a grave injustice.
Andrew Fastow, former CFO, is serving a 6 year sentence and due to be released in 2011. He is credited as the architect behind many of the special purpose companies that were set up to hide Enron's debt and losses. He also skimmed something like $40M out of those partnerships for himself.
Three British Bankers went to jail. Lea Fastow, former wife of Andrew Fastow went to jail for 1 year. Timothey Belden, former head of trading for EES was sentenced to two years of court-supervised release. Richard Causey, Chief Accounting Officer, was sentenced to a 5-7 year prison term. Neil Coulbeck was Head of Financial Markets for North America with RBS committed suicide in London. David Duncan, lead auditor from Arthur Anderson, withdrew his guilty plea in 2005 based on the overturning of the Arthur Andersen conviction.
Rebecca Mark-Jusbache, former Vice-Chairman of Enron, cashed out $80M in 2000 and resigned. Never accused of wrong-doing she did pay $5M in a shareholder lawsuit. Lou Pai, former CEO of Enron Energy Services, cashed out with $280M before the ship sank. He divorced his wife, married a stripper and moved to Colorado where he became the second largest landowner. In July 2008 he agreed to pay $31.5M to settle a civil suit.
Former senator Phil Gramm was one of the cosponsors of the bill that has been attributed with providing the loophole that allowed the Enron scandal to occur. Phil Gramm's wife, Wendy Gramm, was on the board of Enron at the time where she served on the audit committee. Phil Gramm was the senior economic advisor to the John McCain presidential campaign.