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Non-Tech : The Enron Scandal - Unmoderated -- Ignore unavailable to you. Want to Upgrade?

To: opalapril who wrote (2471)	8/22/2002 11:39:02 AM
From: stockman_scott	Respond to of 3602

Let the Enron 'perp walk' begin Commentary: Fastow, Skilling, Lay next in line By David Callaway, CBS.MarketWatch.com Last Update: 12:01 AM ET Aug. 22, 2002 SAN FRANCISCO (CBS.MW) - Even after writing and reading about the great Enron train robbery for more than 10 months now, my first reaction to the news that Michael Kopper had copped a plea was pretty much the same as yours. Michael who? The former executive for the collapsed energy giant, the managing director of global finance, was integral in running some of the partnerships that Enron (ENRNQ: news, chart, profile) used to hide the debt that eventually crushed it. And now that he has aligned himself with the Feds, he'll be a key witness as the investigation gathers steam. But Kopper is not the prize here. He's not the father, son and Holy Ghost of this haunting tale of corporate greed and power lust. Those roles are still played by former Chairman Ken Lay, former Chief Executive Jeff Skilling, and former Chief Financial Officer Andy Fastow. And if those three haven't caught the last train for the coast by now, they must surely be thinking about it; because now the big guns are pointing squarely at their chests. The Department of Justice, proving that the wheels of justice do in fact grind slowly, took so long in preparing its cases against the former Enron executives that the scandal threatened to become eclipsed by the fraud at WorldCom (WCOEQ: news, chart, profile), the insider trading mess at ImClone Systems (IMCL: news, chart, profile), and the case of the missing art at Tyco (TYC: news, chart, profile), among others. So while it might have been easy for a while for the Enron three and any of their apologists to sit back and say, "You see, everybody was doing it," those days are now over. Walk of shame A lot has been made recently of whether any of the executives in the corporate greed scandals this year should have to bear the indignities of the "perp walk," which is the parade in handcuffs in front of the TV cameras that police have traditionally reserved for perpetrators of common crimes. Those concerned think it is humiliating for the executives -- typically middle-aged white guys -- to be paraded about in handcuffs when there is no real danger that they will become violent or when they are in some cases turning themselves in peacefully. That misses the point of the deterrent effect of these mini-dramas. Just as rotting away in jail is supposed to act as a deterrent against committing crimes, so should a public spectacle like the "perp walk" be a deterrent. In fact, if you're a well-known CEO who is used to more flattering media coverage, it could even be more of a deterrent than say, the prospect of spending two years in a country club prison playing golf and hanging by the pool. So don't do the crime, if you can't walk the line. The Kopper plea was a much-needed break for the Feds in their battle to clean up the Enron mess. They now have a guilty plea to criminal charges that they can use to bring similar charges against others involved. It also shows that however much we might try to wish it away as the stock market has started to rally this month, the corporate greed scandal is going to stay with us for some time as these investigations and subsequent trials proceed. The trials of Michael Milken and Ivan Boesky came years after their insider trading violations took place. This round of corporate justice will likely be no different. But for Messrs. Lay, Skilling and Fastow, the second-half clock started ticking Wednesday morning. _____________________________________ David Callaway is executive editor of CBS.MarketWatch.com.