Former Enron CEO Jeffrey Skilling was found guilty in 2006 on charges of fraud, insider trading, and conspiracy related to the energy company’s collapse and was sentenced to 24 years in prison, but a new report says Skilling could see the outside world sooner than expected. [More]
A Texas mom has been accused of running her own miniature Enron in order to support her upper middle-class lifestyle and put her son through college. Basically, she borrowed from Peter to pay Paul to buy a Lexus and never paid Peter back.
If you bought individual Enron stock, you might get a piece of a new settlement against all the companies who supported Enron along the way and knew, or should have known, what was up. [TopClassActions]
CNBC has put together a quick slideshow list of the top 10 largest Chapter 11 bankruptcy filings in US history based on the pre-bankruptcy assets of the companies in question. It really gives you a sense of the incredible scale of the Lehman Brothers filing — the next closest bankruptcy was Worldcom, which had $103.9 billion in assets before the filing — 535.1 BILLION DOLLARS less than Lehman Brothers. Damn.
Today the U.S. Supreme Court effectively killed off any chance of a $40 billion class-action lawsuit against the investment firms that did business with Enron. The suit charged that the Wall Street firms were complicit in Enron’s massive corporate fraud fiasco. The Supreme Court, however, just ruled on a similar case last week and found that “third parties – vendors, contractors and consultants such as banks, accountants or attorneys – can’t be sued over corporate fraud unless investors relied on them when making their investing decisions.”
Lay and Skilling, who also served as CEO, were convicted in May 2006 for their role in the accounting fraud that led to the collapse of Enron in 2001. The bankruptcy erased billions in investors’ money and wiped out the pensions of thousands of Enron employees.
Remember how Sen. Specter wanted those corporate-wrongdoing rules eased last week? Yesterday, his wish came true. In the wake of the 2003 Worldcom scandals, federal prosecutors received new powers in the form of guidelines written by then deputy attorney general, Larry D. Thompson.
Sen. Arlen Specter wants to ease the guidelines that helped nail Enron and Arthur Anderson.
• Personally, we’re a slut for love. [NYT] “The Taming of the Slur”
• If you can’t have Lay, there’s always other chips to go with the fish. [CT] “Enron-related case means test for new treaty”
• It’s like that children’s game, would you rather have your hip disintegrate, or your jaw? [CT] “Lawyers gear up to attack Fosamax”
The official Ken Lay info page, besides being a prime example of Web 1.0 brochureware, has a letter to visitors penned shortly after the trial’s conclusion. In it, he expresses surprise and shock (twice) at the outcome, some blah blah blah, and then, his belief that this is all part of God’s plan. In light of Ken’s recent “demise,” the concluding paragraph runs rife with irony and foreboding.
So, it seems that some people don’t think Ken Lay is actually dead.
• BP oil contains black soylent green. [CT] “Jackson Leads Anti-BP March Near Refinery”
• The news is not that a data breach at VISA had a data breach that caused consumer’s debit cards to get stolen, it’s that they’re actually finally formally announcing it. “Visa Says ATM Breach May Have Exposed Data” [CT]
• Hasbro cancels plans for line of racy dolls based around ‘Pussycat Dolls,’ switches focus to My First Little Lolita rollout. [NYT]
Kenneth L. Lay and Jeffrey K. Skilling were convicted today on charges of fraud and conspiracy.
Ladies and Gentlemen, your Tier 1 champions! Some no-brainers, squeakers and absolute pummeling.