The Enron Scandal - Unmoderated Message Board

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Non-Tech : The Enron Scandal - Unmoderated

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To: Glenn Petersen who wrote (2430)	8/4/2002 8:47:31 PM
From: Glenn Petersen	of 3602

Did DYN cook their books? Sunday August 4, 5:10 pm Eastern Time FT.com Ex-executive makes charges against Dynegy By Sheila McNulty in Houston biz.yahoo.com A former senior vice-president and controller of Dynegy has accused the company of civil conspiracy, claiming he was sacked after refusing to manipulate the US energy trader's books. Bradley Farnsworth claims in a lawsuit that he was asked to "shave" forward gas prices in 2000 to help the company meet its third quarter earnings targets. After refusing and requesting a transfer, he was reassigned and eventually fired, he alleges. The lawsuit puts Dynegy under pressure again just a week after it sold an asset to ease its liquidity crisis and pull back from bankruptcy. The asset sale, together with a refinancing move by competing energy trader Williams, had been greeted with euphoria by investors hoping for a new lease of confidence in the crisis-hit sector. The sector has been reeling since the collapse of Enron, the biggest US energy trader, in December, since when federal investigators have continued to uncover evidence of deceptive trading. Ratings agencies have downgraded the credit of many traders to "junk" status. Mr Farnsworth says Dynegy has failed to pay termination payments since he was fired in October 2001. He has charged Dynegy with wrongful discharge and breach of contract. Dynegy was surprised by the lawsuit. "The company is in the process of reviewing it and will vigorously contest Mr Farnsworth's meritless claims," said John Sousa of Dynegy. Yet Philip Hilder, Mr Farnsworth's attorney - who also represents Sherron Watkins, the Enron whistleblower - said the facts were clear in the civil lawsuit filed on Friday in a Texas state court.

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