Ex-Enron CEO Lay Indicted
Why is Ken smiling ?
He knows that he is so filthy rich he will get off !
And even if he does serve time it will be minimal
AND HE WILL NOT LOSE A NICKEL !
Every corporate crook that is
convicted, should be made to lose everything they own
and the proceeds be divided up between the employees and
customers they screwed !
Dave Kaspersin
Ex-Enron CEO Lay Indicted for Scheme
Ex-Enron CEO Kenneth Lay Was Involved in a Scheme
to Deceive Public, Others, Indictment Says
HOUSTON July 8, 2004 — Former Enron CEO Kenneth Lay was involved in a
wide-ranging scheme to deceive the public, company shareholders and
government regulators about the energy company that he founded and
led to industry prominence before its collapse in 2001, according
to an 11-count indictment unsealed Thursday.
The federal indictment adds Lay to charges already filed against
his hand-picked protege, former CEO Jeffrey Skilling, and former
top Enron accountant Richard Causey.
It accuses Lay of participating in a conspiracy to manipulate Enron Corp.'s
quarterly financial results. It also accuses him of making public
statements about Enron's financial performance that were false and
misleading and omitting facts necessary to make financial statements
accurate and fair.
The contents of the indictment, returned Wednesday, were released a
few hours after Lay was taken away in handcuffs after surrendering
to the FBI Thursday morning.
The indictment of Lay, 62, who also was Enron's chairman, caps an
investigation that snared dozens of other employees and executives
but took nearly three years to reach the man at the top.
Enron's collapse in late 2001 cost investors billions of dollars,
put thousands of Enron employees out of work and wiped out retirement
savings for many. The company, once admired, became a symbol of
corporate greed and excess, and its fall was followed by a string of
scandals at other companies.
"Nice of you all to show up this morning," Lay, accompanied by a pastor,
told a throng of reporters before entering the FBI offices.
About 20 minutes later, he left in handcuffs for the trip to the federal
courthouse and a scheduled late morning appearance before a federal judge.
The indictment accused Lay, Skilling and Causey of enriching themselves
through salaries, bonuses, grants of stock and stock options.
It specifically names Lay in 11 counts: one count of conspiracy,
two of wire fraud, four of securities fraud, one bank fraud and
three of making false statements to banks.
After learning of the indictment on Wednesday, Lay said in a statement,
"I have done nothing wrong, and the indictment is not justified."
Lay's attorney, Michael Ramsey, said he would push for the former Enron
chief executive to go trial ahead of other executives charged in the investigation.
He maintains Lay did nothing wrong and cast blame on former chief financial
officer Andrew Fastow, who pleaded guilty to two conspiracy counts in January.
Fastow admitted to orchestrating partnerships and financial schemes
to hide Enron debt and inflate profits while pocketing millions of
dollars for himself.
"Andy is obviously a liar and a thief," Ramsey said before entering
the courthouse Thursday. "He admits that."
Prosecutors from the Justice Department's Enron Task Force presented
an indictment to U.S. Magistrate Judge Mary Milloy in Houston on Wednesday,
and at their request she sealed both the indictment and an arrest warrant.
The Securities and Exchange Commission also was expected to bring civil fraud
charges against Lay on Thursday, including making false and misleading statements
and insider trading, a person familiar with the case said, speaking on condition
of anonymity.
Enron plotted to shut down power plant
Move came day that rolling blackouts hit California, utility says
A Washington state utility released audiotapes Thursday that it said
revealed bankrupt energy trader Enron Corp. plotted to take a power
plant off-line in 2001 to jack up electric prices in Western states.
That same day, shortages of power forced rolling blackouts in northern
California that affected about 2 million customers.
Snohomish Public Utility District in Everett, Washington, released
the tapes as part of its effort to void a $122 million lawsuit Enron
has filed against it seeking payment for electricity it was contracted to provide.
The utility says an Enron employee and a worker at a power plant in
Las Vegas, Nevada, made up phony repairs, taking the plant off-line January 17, 2001.
"We want you guys to get a little creative ...
and come up with a reason to go down,"
the Enron worker tells the plant employee on one of the tapes.
"Anything you want to do over there? ... Cleaning, anything like that?"
the Enron employee says.
"Yeah, yeah," the other replies. "There's some stuff we could be doing."
Eric Christensen, the utility's assistant general counsel,
said the tapes show Enron was planning to manipulate Western
power markets as early as 1998 -- before California's deregulated
energy market opened. Others imply that Enron used similar tactics
in Canada and that traders were aware the actions were illegal.
One Enron employee tells a colleague in another recorded conversation,
"I'm just trying to be an honest camper so I only go to jail once."
"Well, there you go. At least in only one country," the other replies, and laughs.
"Yeah, [expletive], this isn't a joke," the first employee says.
Earlier tapes obtained during the Enron-Snohomish lawsuit indicated
Enron had manipulated the Western power grid for a year and a half.
Those tapes include traders gloating profanely about overcharging
"Grandma Millie" in California.
The utility has asked federal regulators to throw out the $122 million
contract with Enron to provide electricity -- a contract it says was
inflated by Enron's manipulation of Western energy prices in 2000 and 2001.
Christensen said the tapes could force the Federal Energy Regulatory Commission
to "aggressively deal with Enron."
"I think the evidence is now so overwhelming that they're going to be
forced to act," Christensen said.
Enron, headquartered in Houston, Texas, collapsed in December 2001
and filed for bankruptcy protection after revelations that its chief
financial officer was running partnerships that allowed the company
to keep $500 million in debt off its books.
Twenty-three of Enron's executives -- including former CEOs Jeff Skilling and Ken Lay --
have been brought up on federal charges related to its collapse.
Lay and Skilling have pleaded not guilty.
Enron spokeswoman Jennifer Lowney said company officials
"are continuing to cooperate with ongoing investigations."
Democratic Sen. Maria Cantwell of Washington accused FERC of
dragging its feet in reviewing the case, even though its staff,
she said, has found "documentation of criminal activity."
"That means a little utility in the state of Washington has
actually had to become the private investigator, the policeman on the beat,
their own counsel and attorney before the FERC -- and at their own expense
do the job that federal investigators and regulators should do," Cantwell said.
FERC spokesman Bryan Lee said the commission has recommended that Enron
be forced to disgorge more than $1.6 billion in profits it was found to
have earned improperly.
He said the commission is acting as quickly as it can in the course of proceedings.
"It's understandable that the folks out West would like to hang Enron
from the nearest tree -- that's, after all, Western justice," Lee said.
But, he said, the commission has to engage in due process.
"That's what the courts demand."
And he said FERC officials "spent considerable sums" to convert
the tapes released over the past few months into an audible format.
"The fact that Enron would jeopardize the health and safety of Western citizens
to chase profits in the energy market is disgraceful," Sen. Maria Cantwell (D-Wash.)
said Thursday. "But it's not just disgraceful on a human level — it's also illegal."
If you were subjected to Enron's electric manipulation
you are entitled to be reimbursed.
Was your business shut down ?
Was you business or home subjected to Low Voltage ?
Do you know of anyone who died during the black outs or brown outs ?
Everyone at Enron who knew this was going on from the top
to the bottom, should:
A. Be sent to prison.
B. Have everything they own confiscated and be sold to
help pay back all of the "Grandmothers" that Enron screwed !
Dave Kaspersin
Enron Tape Sound clips are here
AND here
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Dave Kaspersin
Email to:drk@dyrec.com
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