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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (335117)	12/30/2002 3:08:04 PM
From: Bald Eagle	Read Replies (1) \| Respond to of 769670

They're getting close to Lay! Ex-Enron Treasurer in U.S. Criminal Probe By KRISTEN HAYS 12/30/2002 13:08:18 EST Enron Corp.'s former treasurer wants the government to hold off on seizing money he allegedly gained from illegal deals because he is a subject in the sweeping criminal investigation. Ben F. Glisan Jr., 36, said in a filing in federal court in Houston that he has been informed by the Justice Department's Enron Task Force "that he is a subject of that criminal investigation," and that his Fifth Amendment right against self-incrimination could be burdened if prosecutors simultaneously pursue a civil forfeiture case against him. According to the filing last week, prosecutors have consented to putting the forfeiture action on the back burner as the criminal probe continues. U.S. District Judge Melinda Harmon has yet to approve Glisan's request. Robert Mintz, a former federal prosecutor who is now a partner at McCarter & English in Newark, N.J., said Monday a "subject" in a criminal probe is someone whose conduct is being reviewed by a grand jury to determine if he or she broke the law and should be indicted. The term has less weight than a "target" in an investigation, Mintz said, which indicates the government has sufficient evidence of wrongdoing and is pursuing an indictment. "The large gray area into which most people's conduct falls is this 'subject' area," Mintz said. "It certainly puts him on notice that the federal prosecutors are scrutinizing carefully his conduct with an eye toward bringing charges later." Prosecutors say Glisan was one of several so-called "Friends of Enron" who invested small amounts in one of a series of allegedly shady partnerships run by Andrew Fastow, the former chief financial officer. Prosecutors allege the partnerships were used to hide debt, inflate profits and enrich selected Enron executives and managers at the expense of the company and its shareholders. So far only two alleged participants in the schemes have been charged. Fastow, who was forced out of Enron in October last year upon revelations that he pocketed millions of dollars in connection with the partnerships, faces a 78-count indictment for fraud, money laundering and obstruction of justice. He denies any wrongdoing. Fastow's former top lieutenant, Michael Kopper, pleaded guilty in August to wire fraud, money laundering and conspiracy for creating and running some of the partnerships. Kopper, who quit Enron in July last year to run one of the partnerships, agreed to surrender $12 million to the government and is cooperating with prosecutors. Both Kopper and Fastow are free on $5 million bond. Glisan was fired in November last year when the company learned of his $5,800 investment in one of the partnerships in March 2000 that generated a $1 million return two months later. Prosecutors have frozen about $23 million held in bank and brokerage accounts by Fastow, his family, his family's foundation, Glisan, and others who invested in the partnerships. Of those, more than $900,000 is in an account in the names of Glisan and his wife, Barbara. Glisan said in court documents filed earlier this month that he declared his profit as income and paid $412,000 in taxes. He offered to turn over the remaining $628,744 to prosecutors in the forfeiture case, but the government has yet to respond. Glisan isn't the only investor to identify himself as a subject of the criminal probe. The list of frozen bank accounts includes more than $218,000 held by Kathy Lynn, a former Enron vice president who also invested in one of Fastow's partnerships. She identified herself as a subject in the criminal probe in a filing last month, and Harmon approved her request that the forfeiture case against her be put on hold.