Hit and miss for Enron investigators
Friday March 7, 2003
The Guardian
Federal prosecutors investigating Enron scored their most
significant victory so far when they arrested finance chief Andrew
Fastow early in October 2002. He was indicted on 78 counts of
fraud, money laundering, conspiracy, obstruction of justice and
faces five to 20 years in jail on each charge.
The Enron scandal erupted in the dying months of 2001 and
sparked other corporate scandals where prosecutions have been
far quicker.
Legal experts said yesterday's report builds the case against
former senior staff at Enron who have yet to be charged. The
complexity of the financial engineering that Enron employed
perhaps underlines why the inquiry is taking so long.
Kenneth Lay, a friend of President Bush, and Jeffrey Skilling
both filled the chief executive post during the time in question
but have maintained their innocence and have not been
prosecuted.
Mr Fastow, whose trial has yet to be scheduled, insisted he was
only following orders and has pleaded not guilty.
Enron's auditor, Arthur Andersen, was found guilty of obstructing
justice, leading to the demise of the accountancy.
The first Enron employee to admit guilt was Michael Kopper who
worked alongside Mr Fastow in the energy firm's finance
department and could be a key witness.
Merrill Lynch has been the only bank to settle with the
securities and exchange commission over its relationship with
Enron, paying out $80m.
guardian.co.uk |
