ENRON: They're Getting Close

[UpInArms]

http://www.fortune.com/fortune/ceo/articles/0,15114,538800,00.html

For almost two years one question has dogged every corporate crime-watcher in the U.S.: Will Ken Lay and Jeff Skilling, the men who ran Enron, ever be hauled off in handcuffs? Many thought that day would never come—in mid- October, a New Yorker story by Jeffrey Toobin was headlined: "Why the country's most notorious executives may never face criminal charges."

But then, on Oct. 30, the government scored a major victory when a former top executive named David Delainey, a 37-year-old Canadian, pled guilty to a criminal count of insider trading and agreed to forfeit $8 million he'd reaped from selling Enron stock.

Since Delainey's plea, it has become clear that the government is pursuing a broad case, one that goes to the heart of what was rotten at Enron. And—unlike other approaches that have occupied the feds for months—this one has the potential to lead up the food chain quickly. Delainey, who is cooperating with prosecutors, reported directly to Skilling, and for the past few weeks Houston has been swirling with rumors that Skilling will be indicted soon.

<snip>

Delainey's deal could change all of that. Here was a guy whom Skilling viewed as future Enron CEO material. Delainey had run Enron North America (ENA), which housed the company's vaunted trading operation, and later Enron Energy Services (EES), its much-hyped retail business. And while Delainey (in addition to settling with the SEC) pleaded guilty to only a single criminal count of insider trading, he also admitted that he knew there was widespread fraud at Enron—fraud that totaled in the billions of dollars. As the Department of Justice press release trumpeted: "Delainey knew of and participated in aspects of a scheme by Enron's senior managers from at least 1998 through late 2001 to deceive the investing public about the nature and profitability of Enron's businesses and thereby to inflate the share price of Enron's stock." Houston lawyer Philip H. Hilder, a former federal prosecutor who now represents several onetime Enron employees, says, "They indicted the overall business practices of Enron."

...more...

[truthisfreedom]

1. bushco doesn't need kenny-boy anymore.

off with 'is head! on with the nazi cause!

[The Backlash Cometh]

4. On the contrary.

If they get Skilling and Ken Lay, it's a matter of plea bargaining before they get Cheney and Bush, if Bush is involved. But certainly, Cheney.

[truthisfreedom]

6. woohoo!

but look for the standard cover tactics.

[0007]

14. ......and then on to the Carlyle thugs, 'eh?

Would just love to see Pooper hauled off in handcuffs while bitch Barbara squeals like a pig!!!!

Guess Halliburton would be mailing dickie's checks to a local hospital after all this happened?

[catzies]

22. Yeah, but Carlyle isn't a public company.

Two completely different albeit evil scenarios.

[SoCalDem]

15. Define "they".. If it's asscrust, "they" will never go after Bush/Cheney

I have this horrible sinking feeling that these are "show trials".. They one they are after is Martha.. The "boys" will plead out and publically state that they merely made an error in judgement...they will pay a fine to the GOVT (not the people they stole from) and then the justice dept will crucify Martha..

Kenny-boy is too close to * for anyone to seriously go after him..

[cosmicdot]

20. but but but Asscrust "recused" himself from the enron case

... I think the excuse was because enron had contributed to his campaign ... but, the Deputy Atty General, Larry Thompson, was supposedly put in charge, as if he had no conflicts of interests, too ... but, he resigned in August 2003 ... which could have been AssCrotch's excuse to involve himself ... Connecticut Governor has amazing recovery from amnesia ...James B. Comey, nominated by President Bush to succeed Larry Thompson ... who he? has he been confirmed???




Ashcroft recuses himself from Enron probe
January 10, 2002 Posted: 6:51 PM EST (2351 GMT)

Bush says he has "never discussed" Enron's troubles with its chairman, Kenneth Lay.

WASHINGTON (CNN) -- Attorney General John Ashcroft and a top aide recused themselves Thursday from the Justice Department's criminal investigation of Enron Corp., the energy giant that filed the largest bankruptcy case in U.S. history last month and whose executives were prominent political contributors.

Ashcroft's recusal came as the controversy surrounding Enron's collapse continued to grow, with a major accounting firm saying it destroyed or deleted an undetermined number of electronic and paper documents related to the company's financial straits.

In a press release Thursday, the Arthur Andersen accounting firm said it has notified the Securities and Exchange Commission and the Justice Department about the development.

It also said it has suspended its records management policy immediately. The firm said it had retrieved some of the deleted electronic files and was trying to more off them.

http://www.cnn.com/2002/ALLPOLITICS/01/10/bush.enron/

http://www.google.com/search?hl=en&ie=UTF-8&oe=UTF-8&q=ashcroft+recuses+self+from+enron&spell=1

is Stephen M. Cutler still at the Securities Exchange Commission???? dunno .... have there have been shake ups at the SEC???
http://www.namebase.org/cgi-bin/nb06?_CUTLER_STEPHEN_M

11/7/03
Connecticut Governor John Rowland Admits to Lying About Ken Lay
Meetings


Gov. John G. Rowland retreated Thursday from his long-held denial
that he spoke with former Enron Chairman Kenneth Lay - acknowledging
for the first time that Lay may have participated in "numerous" phone
conference calls with him and his staff.
http://www.ctnow.com/news/local/hc-rowland1107.artnov07,1,6643444.story?coll=hc-headlines-local




... as (my stomach) the world churns ...

[emad]

2. They haven't scratched the UK Enron link yet - because Poodle

wants next week's State Visit to go off smoothly and doesn't think he and his cronies will be busted for the slush funds they received from Enron-backed fronts.

It's definitely getting too hot in Tony's kitchen right now. Can't see him not ditching the Windsor royals if it's either him or them.

[hang a left]

3. I just can't be optimistic here, it is hard. But will be watching.

[bluestateguy]

5. I favor the death penalty for them

Somehow I get the feeling that many people on the Left would rethink the death penalty if white male corporate crooks were regualrly executed for economic terrorism.

[truthisfreedom]

7. ooh, i like that. economic terrorism... clark or dean should use that

phrase soon. economic terrorism... after all, that's what modern terrorism is about, right?

[TahitiNut]

8. I'd only favor the 'death penalty' for the corporation itself.

That corporations are now effectively viewed as immortal super-citizens is reprehensible. Executives of law-breaking corporations should not be either civilly or criminally immune from prosecution, but their behavior must be viewed first and foremost as the behavior of the corporation itself. For those who'd decry "loss of jobs" and other secondary impacts, I can only point out that (1) both employees and shareholders would be far more motivated to keep their companies honest and (2) we'd have a greater incentive to decouple employee benefits from the corporations -- eliminating them as coercive 'golden handcuffs' to keep folks from 'rocking the boat.' Health care and retirement should be tranportable and independent of one's employment -- just as human rights should be decoupled from property ownership. (That's all 'imho' of course.)

[hang a left]

9. I always enjoy your input. I have learned alot from you.........

thanks.

[54anickel]

10. Interesting take. Think I like it.

[xchrom]

12. i'm with that

but kenny-boy has been making stacks of money since the enron debacle all over the middle east -- does he get to keep all of that?

[reprobate]

25. 100% agree, TahitiNut. But may I ask a pivotal question?

First, let me say that I believe that ALL the problems we face in this country, including the end of our "democracy" are attributable to the SC decision to give 'personhood' to corporations. That was the opening shot of the class war that has been playing out since the turn of the twentyith century, and is about to end with the empoverishment of the majority of the citizens of this country.

Now the question: With corporate control over the media, congress, the white house, and the courts, how would you suggest that this be accomplished? Seems to me that with all the factions that would have to act under the control of the enemy, this could only be accomplished by a mass uprising of the people, and the people of this country are so uneducated and uninterested in national and international politics that the only thing they leave the couch for is another beer.

I think your plan will have to wait for the founding of the Second Republic.

But then I've always been a pollyanna.

[54anickel]

27. personhood for corporations was the beginning

of the end of We the People. Interestingly there is a new interest in this. Google corporate personhood, and there are many hits and quite a few are attempting to organize to fight back. States are passing ordinances to deny corporate personhood.
We may be able to get there.

[The Magistrate]

29. That Is True, Mr. Reprobate

[Mel]

11. sentences received for drugs

you know the ones that sends people up for life+ years.

I could go for that for the male or female corporate crooks.

[CheshireCat]

26. Confiscate $ and property for corporate crooks

I have never liked the laws that allows law enforcement to take possession of money, homes, cars, etc, that belong to people arrested for drug possesion or distribution. (For those of you who have never heard of this, it works this way. Law Enforcement confiscates property for certain persons charged with drug offenses, then uses it or sells it at auction. A few years ago in SC, property was confiscated before the trial was held. No pretense of innocent until proven guilty)

However, in the case of ENRON, where money has been stolen by the corporation from its employee's retirement fund and from small investors, this type of confiscation should work well. Confiscate corporate property and money along with assets of CEO's and other such high status employees. Money and property confiscated could be used to pay back the employee retirement fund and/or ripped off small investors.

[BloodyWilliam]

16. Another kick for that term! We NEED to start using it!

Economic terrorism! That's what white-collar crime is. The number of lives men like Lay and Skilling and Cheney have ruined (nevermind the resources and money that could have gone to American families who need it rather than be hoarded by those greedy SOBs) doubtlessly dwarfs those ruined on 9/11.

Killing the economy is still killing. People starve, people go without medicine. How many deaths because of these people that could never be counted? Every action has a consequence, and every resource must come from somewhere.

[cosmicdot]

23. most all of the abuse corporate feudal lords wage over employees

is economic terrorism in some form or another

too many people report to work leaving the Bill of Rights outside and in fear = tyranny

"be glad you have a job" is a threat, not motivation

performance reviews are many times a tool to retaliate, apply retribution and to divide the annual pay increase allotment between the good ol'boy haves and the have nots

etc.

[glitch]

19. here's a nice summary of economic terrorism

I posted it awhile back and it sadly sank. The numbers are dramatic IMO.

http://www.commondreams.org/views03/1104-04.htm

Published on Tuesday, November 4, 2003 by the Los Angeles Times
Corporate Crime Acts Like a Thief in the Night
by Lee Drutman

snip:
Using conservative numbers issued by the U.S. Chamber of Commerce, for instance, criminologist Jeffrey Reiman, a professor at American University, estimated that the total cost of white-collar crime in 1997 was $338 billion. The actual cost is probably much greater. For instance, the General Accounting Office, the investigative arm of Congress, estimates that health-care fraud alone costs up to $100 billion each year. Another estimate suggests that the annual cost of antitrust or trade violations is at least $250 billion. By comparison, the FBI estimated that in 2002, the nation's total loss from robbery, burglary, larceny-theft, motor vehicle theft and arson was almost $18 billion. That's less than a third of the estimated $60 billion Enron alone cost investors, pensioners and employees.

But corporate crime isn't just about the money. It's also about people's lives. The national murder rate has hovered around 16,000 a year in recent years. (In 2002, the FBI reported 16,204 murders.) But a respected group of occupational health and safety investigators, led by J. Paul Leigh, a UC Davis School of Medicine professor, has estimated that in 1992 alone there were 66,971 deaths resulting from job-related injuries and occupational diseases. These numbers do not include the thousands of annual deaths caused by cancers linked to corporate pollution, deaths from defective products, tainted foods and other corporate-related causes.

[Wapsie B]

21. Yes!

Music to my ears! Let's see if capital punishment really is a deterrant. And to go along with TahitiNut below, I would disband the corporation as well. Seize any and all assets, even if they're in the Cayman Islands.

[pansypoo53219]

13. as if

anything substantial would be done prior to the election.
expect asscroct to get involved.

[Sven77]

17. pardons for all

im sure they will get presidential pardons after the next election.

[CANDO]

18. My opinion why Kenny Boy hasn't faced the music......

is because he told them (Bush/Cheney) if he ever gets prosecuted he will sing like a canary about all of it, the Energy meetings, the Afghan pipeline, the Iraqi oil field maps, and so on. They will never touch him, he's nitroglicerine.

[PurityOfEssence]

28. Uh-yup

He won't go down without a fight. They will play a waiting game and find some way to plea-bargain or something, but this will happen after the election. He knows too much, and he's not about play nice.

[Don_G]

24. Ken Lay Is Also Supposed To Hand Over

His "personal" papers reguarding Enron to the DoJ within the next few weeks and Lea Fastow is negoating plea bargain as we speak. I expect this to develop soon and fairly quickly.

[proud patriot]

30. YAYYYYYYYYY!!!!!!!!

hold them accountable

[cliss]

31. I read recently that Ken Lay

is living comfortably in Houston, thank you. He's started a new company (don't know anything about it), but he's doing great. He's been seen at all the jet-setter parties.

As you all know, he walked away with untold millions. He had a severance package which he cashed in, and he also had some kind of settlement or an insurance policy which covered his ass in some unforeseen even such as Enron going belly-up.

So...I think you're right. He will never see the inside of a jail cell, much less the inside of a court room.