EdwardKnoxII 0 Report post Posted July 8, 2004 http://www.msnbc.msn.com/id/5387858?GT1=4244 Ex-Enron CEO is indicted Kenneth Lay will surrender to authorities, but insists charges are 'not justified' Kenneth Lay, the former chief executive of Enron, has consistently denied any role in the fall of the once high flying energy trader. HOUSTON - Former Enron Corp. Chairman and Chief Executive Kenneth Lay, who grew the company into an energy trading giant that became the ultimate symbol of corporate wrongdoing and greed, was indicted Wednesday and said he would surrender to authorities. Lay said in a statement issued Wednesday afternoon he had been indicted and would surrender Thursday morning. Sources earlier said a federal grand jury returned a sealed indictment with undisclosed criminal charges for Lay’s actions before the company fell into bankruptcy in December 2001. On Thursday, Lay is to follow a well-worn path for former Enron executives: surrender to the FBI and then make his initial appearance before a federal magistrate judge. “I have been advised that I have been indicted. I will surrender in the morning,” Lay said. “I have done nothing wrong, and the indictment is not justified.” Houston-based Enron was the nation’s seventh-largest publicly owned firm when it unraveled in the final months of 2001 amid disclosures that it had used off-the-books deals to hide billions in debt and falsely inflate profits. Lay, 62, has steadfastly denied any wrongdoing. Andrew Weissmann, the director of the Justice Department’s Enron Task Force, did not return a call seeking comment. Separately, the U.S. Securities and Exchange Commission plans to file civil fraud charges against Lay in Houston on Thursday morning, a source familiar with the matter said. A powerful man Lay, once a leading U.S. industrialist and close friend of President Bush -- who called him “Kenny Boy” -- now faces felony charges stemming from the Enron debacle. Bush, at an appearance in Waterford, Mich., was asked by reporters about the indictment but walked away without answering. The charges come 2 1/2 years after the U.S. Justice Department began an investigation which has slowly climbed the corporate ladder to bring criminal charges against 22 former Enron employees. Former chief financial officer Andrew Fastow pleaded guilty in January and is cooperating with prosecutors who were aiming higher up the corporate ladder. He helped prosecutors bring charges against Lay’s hand-picked successor, Jeff Skilling, who unexpectedly quit in August 2001, six months after becoming CEO. He and former chief accountant Rick Causey were charged together and have both pleaded not guilty to more than three dozen counts of insider trading, fraud and lying on Enron financial statements. Observers have speculated Lay could face similar charges. The fall of Enron touched off investigations that uncovered widespread financial fraud in corporate America and was followed by scandals that brought down giants such as accountancy Arthur Andersen, telecom giants WorldCom Corp., now MCI, and GlobalCrossing and HealthSouth Corp. Those bankruptcies and charges of criminal behavior in the boardroom eroded consumer confidence and helped send world stock markets into a year-long tailspin. In the wake of the scandals, strict new federal laws on corporate governance were enacted. Pointing fingers In a recent interview with The New York Times, Lay accepted responsibility for Enron’s demise, but said he had committed no crimes. He said Fastow, the architect of Enron’s financial house of cards, was largely to blame for the company’s troubles. “At our core, regrettably, we had a chief financial officer and a few other people who, in fact, mismanaged the company’s balance sheet and finances and enriched themselves in a way that once we got into a stressful environment in the marketplace, the company collapsed,” Lay told the Times. Legal experts said that defense may not win over a jury, especially in Houston, where thousands of people were affected by the company’s collapse. “When you’re talking about transactions of tens of millions of dollars, you’d expect the CEO to know about it,” said Chris Caldwell, a former federal prosecutor now in private practice in Los Angeles. Fastow, who is accused of enriching himself by siphoning off millions from the off-the-books partnerships, has pleaded guilty to fraud and is cooperating with prosecutors in exchange for a 10-year prison sentence that is yet to begin. His wife Lea, a former assistant treasurer at Enron, has pleaded guilty to filing a false tax return and is slated to start a one-year jail sentence next week. Skilling and Causey have pleaded not guilty and currently are free on bail. Lay, as head of then Houston Natural Gas, led a 1985 merger that formed the modern Enron. He became an aggressive political player who lobbied lawmakers such as Bush and his father, former President Bush, to deregulate natural gas markets. Generous campaign donations -- at one time he was the current President Bush’s top contributor -- helped gain access to the halls of power. Enron used deregulation to become a dominant force in electricity trading in the 1990s and served as a role model for dozens of other firms that mimicked its no-holds-barred trading practices. But the burgeoning merchant power industry imploded after Enron’s collapse and the California power crisis of 2000-2001. Lay was Enron’s chief executive for most of the company’s history, but handed the post to Skilling in February 2001. Skilling suddenly resigned in August 2001. Lay resumed as CEO until he quit in January 2002. Lay told the Times his personal fortune once stood at $400 million, but had dropped below $20 million because most of his holdings were in now worthless Enron stock. Copyright 2004 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Share this post Link to post Share on other sites
Guest MikeSC Report post Posted July 8, 2004 But...but...but...he's Bush's friend and Bush was "protecting" him from the law. Right? -=Mike Share this post Link to post Share on other sites
Vyce 0 Report post Posted July 8, 2004 Obviously, Mike, Bush is just doing this as a ploy to get more public support in the election year. [see? There's a liberal conspiracy for everything. You don't even have to try very hard.] Share this post Link to post Share on other sites
Jobber of the Week 0 Report post Posted July 8, 2004 But...but...but...he's Bush's friend and Bush was "protecting" him from the law. Right? -=Mike Clearly it only wasn't discovered sooner because Clinton was covering up for his golfing buddy. Share this post Link to post Share on other sites
Guest MikeSC Report post Posted July 8, 2004 Maybe Wonderboy Edwards used his amazing legal abilities to FINALLY bring him to justice. Thank God for John Edwards. -=Mike Share this post Link to post Share on other sites
2GOLD 0 Report post Posted July 8, 2004 Maybe Wonderboy Edwards used his amazing legal abilities to FINALLY bring him to justice. Thank God for John Edwards. -=Mike Well, the dead people told him how to do it. See? It alls leads back to the dead people. Dear god, what if he is talking to Andrew Jackson?!?! Share this post Link to post Share on other sites
Justice 0 Report post Posted July 8, 2004 Maybe Wonderboy Edwards used his amazing legal abilities to FINALLY bring him to justice. Thank God for John Edwards. -=Mike Well, the dead people told him how to do it. See? It alls leads back to the dead people. Dear god, what if he is talking to Andrew Jackson?!?! "I see dead people... all the time." "Well duh. You're part of the Kerry Campaign." Share this post Link to post Share on other sites
Dr. Tyler; Captain America 0 Report post Posted July 8, 2004 About fucking time. Share this post Link to post Share on other sites
NoCalMike 0 Report post Posted July 8, 2004 Well after the way martha stewart was pursued, there better be some epic effort to put this crook behind bars. I am pretty sure everyone is rolling over on him anyway. Share this post Link to post Share on other sites
Highland 0 Report post Posted July 8, 2004 I doubt it. People wanted to see Martha Stewart taking down several pegs, that's the chief reason she was convicted. Most people believe she was charged and convicted for insider trading, when the fact is that she wasn't charged with that at all. If I was a liberal conspiratist, I'd say that Lay's trail and possible conviction at this point are politically motivated. There was plenty of time to try him before, but with the election looming close, the Republican's can say they're doing something about the scanal and point to the either ongoing or just ended Lay trial as proof. Share this post Link to post Share on other sites
Vyce 0 Report post Posted July 8, 2004 If I was a liberal conspiratist, I'd say that Lay's trail and possible conviction at this point are politically motivated. There was plenty of time to try him before, but with the election looming close, the Republican's can say they're doing something about the scanal and point to the either ongoing or just ended Lay trial as proof. Wow, I was joking in my earlier post, and here someone comes along and actually makes my joke reality. Share this post Link to post Share on other sites
Guest MikeSC Report post Posted July 8, 2004 Maybe Wonderboy Edwards used his amazing legal abilities to FINALLY bring him to justice. Thank God for John Edwards. -=Mike Well, the dead people told him how to do it. See? It alls leads back to the dead people. Dear god, what if he is talking to Andrew Jackson?!?! "I see dead people... all the time." "Well duh. You're part of the Kerry Campaign." "No, I talk to CHARISMATIC corpses." -=J. Edwards Share this post Link to post Share on other sites
Justice 0 Report post Posted July 8, 2004 Well, in all seriousness, there was millions upon millions of pages of paperwork, paper trails, and other things to go through. Martha Stewart and inside trading is a lot easier to organize a case for since it involves one person, while this is cataloguing the downfall of an entire company over the course of years, trying to figure out who knew who and what. Of course it's going to take tons of time. Share this post Link to post Share on other sites
Highland 0 Report post Posted July 8, 2004 Seriously though, this is good for the Bush campaign, since now the Democrats can't use the argument that they're not doing anything about the Enron scandal against them. Share this post Link to post Share on other sites
sfaJack 0 Report post Posted July 8, 2004 Seriously though, this is good for the Bush campaign, since now the Democrats can't use the argument that they're not doing anything about the Enron scandal against them. What can Bush PERSONALLY do to make this process go faster? I mean, it has to be for political gain, right? It can't be that because of the army of lawyers guys like Lay and Skilling surround themselves with AND the sheer magnitude of the fraud and corruption present at Enron, the government is making damn certain they've got all their ducks in a row before bringing charges against guys like Lay? Think about it. What if they had rushed this case just to appease the public with a quick trial and consequently left one little loophole open somewhere that those lawyers then exploited to get Lay & Co. off scot free? The public outcry would have been massive. At least now we're pretty sure justice will prevail in some form or fashion, though maybe not to the degree we'd all like to see. Share this post Link to post Share on other sites
Dr. Tyler; Captain America 0 Report post Posted July 8, 2004 http://story.news.yahoo.com/news?tmpl=stor...jg418y7h_photo1 Share this post Link to post Share on other sites
Justice 0 Report post Posted July 8, 2004 http://story.news.yahoo.com/news?tmpl=stor...jg418y7h_photo1 That's not really his photogenic side. Share this post Link to post Share on other sites
Jobber of the Week 0 Report post Posted July 8, 2004 http://story.news.yahoo.com/news?tmpl=stor...jg418y7h_photo1 Wait, which guy is called Lurch? Share this post Link to post Share on other sites
NoCalMike 0 Report post Posted July 8, 2004 http://story.news.yahoo.com/news?tmpl=stor...jg418y7h_photo1 LOL.....He must not have liked answering spoNtaneous questions about a subject he hasn't been fed answers for. Share this post Link to post Share on other sites
Guest MikeSC Report post Posted July 8, 2004 http://story.news.yahoo.com/news?tmpl=stor...jg418y7h_photo1 LOL.....He must not have liked answering spoNtaneous questions about a subject he hasn't been fed answers for. Ken Lay, in the end, is a friend of his and Lay did wrong. I'm sure Bush isn't thrilled that a friend has to be punished. Why should people expect him to be anything but upset that a friend of his is being punished? It's not like you can say he HELPED him at any point, because he did not. -=Mike Share this post Link to post Share on other sites
NoCalMike 0 Report post Posted July 8, 2004 http://story.news.yahoo.com/news?tmpl=stor...jg418y7h_photo1 LOL.....He must not have liked answering spoNtaneous questions about a subject he hasn't been fed answers for. Ken Lay, in the end, is a friend of his and Lay did wrong. I'm sure Bush isn't thrilled that a friend has to be punished. Why should people expect him to be anything but upset that a friend of his is being punished? It's not like you can say he HELPED him at any point, because he did not. -=Mike Well you usually carry characterisitics of those you are in company with. The only sad thing is, Ken Lay may possibly get approx as much jail time as a black guy who steals a tv. Share this post Link to post Share on other sites
Guest MikeSC Report post Posted July 8, 2004 Well you usually carry characterisitics of those you are in company with. Al Gore's father was a virulent segregationist. I suppose Gore is a total racist. Bill Clinton's mentor was a virulent segregationist. I suppose Clinton is a total racist. -=Mike Share this post Link to post Share on other sites
NoCalMike 0 Report post Posted July 8, 2004 Well you usually carry characterisitics of those you are in company with. Al Gore's father was a virulent segregationist. I suppose Gore is a total racist. Bill Clinton's mentor was a virulent segregationist. I suppose Clinton is a total racist. -=Mike "usually" and I didn't say you carry EVERY SINGLE characteristic, but I would leave it up to you to say something as silly as you did. Share this post Link to post Share on other sites
Justice 0 Report post Posted July 8, 2004 http://story.news.yahoo.com/news?tmpl=stor...jg418y7h_photo1 LOL.....He must not have liked answering spoNtaneous questions about a subject he hasn't been fed answers for. Ken Lay, in the end, is a friend of his and Lay did wrong. I'm sure Bush isn't thrilled that a friend has to be punished. Why should people expect him to be anything but upset that a friend of his is being punished? It's not like you can say he HELPED him at any point, because he did not. -=Mike Well you usually carry characterisitics of those you are in company with. My cousin went to Juve. He was there maybe a year or so, and he's only 17. He failed a grade of H.S. because he skipped too much class, and he's a selfish overconfident ass. Even though I'm related to him and occasionally do stuff with him, I don't think his actions at all reflect mine. Same way: Do you know anyone who has served criminal time? Does that somehow make you a criminal? Share this post Link to post Share on other sites
NoCalMike 0 Report post Posted July 8, 2004 http://story.news.yahoo.com/news?tmpl=stor...jg418y7h_photo1 LOL.....He must not have liked answering spoNtaneous questions about a subject he hasn't been fed answers for. Ken Lay, in the end, is a friend of his and Lay did wrong. I'm sure Bush isn't thrilled that a friend has to be punished. Why should people expect him to be anything but upset that a friend of his is being punished? It's not like you can say he HELPED him at any point, because he did not. -=Mike Well you usually carry characterisitics of those you are in company with. My cousin went to Juve. He was there maybe a year or so, and he's only 17. He failed a grade of H.S. because he skipped too much class, and he's a selfish overconfident ass. Even though I'm related to him and occasionally do stuff with him, I don't think his actions at all reflect mine. Same way: Do you know anyone who has served criminal time? Does that somehow make you a criminal? Ok now YOU are being silly. All I am saying is that IN GENERAL, you tend to keep company that is similar to yourself, whether it is social status, common interests, hobbies etc...... Share this post Link to post Share on other sites
Guest MikeSC Report post Posted July 8, 2004 Ok now YOU are being silly. All I am saying is that IN GENERAL, you tend to keep company that is similar to yourself, whether it is social status, common interests, hobbies etc...... Shall we get into Clinton's Asian fund-raising buddies? You made a point to try and slam Bush and are flustered when the same point can be used, extensively, against people you're more politically agreeable with. But, no, just like when somebody questions your "CIA brought crack to the inner cities" theory, it's just "silliness". The Clintons were friends with Jim McDougal. Care to go into HIS track record? Do you think Kerry's "friends" are clean? -=Mike Share this post Link to post Share on other sites
NoCalMike 0 Report post Posted July 8, 2004 Ok now YOU are being silly. All I am saying is that IN GENERAL, you tend to keep company that is similar to yourself, whether it is social status, common interests, hobbies etc...... Shall we get into Clinton's Asian fund-raising buddies? You made a point to try and slam Bush and are flustered when the same point can be used, extensively, against people you're more politically agreeable with. But, no, just like when somebody questions your "CIA brought crack to the inner cities" theory, it's just "silliness". The Clintons were friends with Jim McDougal. Care to go into HIS track record? Do you think Kerry's "friends" are clean? -=Mike What the hell do I care about you pointing out Clinton's "friends" or even Kerry's for that matter. I am not trying to say they are clean in ANY WAY SHAPE or form, but heaven forbid I suggest the same about your Hero, George Bush. Secondly, how in the hell did Bill Clinton come up, and why is he a nice safe exit for you and the like everytime someone talks about Bush, can you do everyone a favor and never bring up Clinton again, please? Just STFU about Clinton, and I bet you are the first to criticize the media the next time a Clinton Story is aired, even though you yourself can never shut up about him. I don't need a "lets compare him to Clinton" game everytime I bring up Bush. Share this post Link to post Share on other sites
Guest MikeSC Report post Posted July 8, 2004 What the hell do I care about you pointing out Clinton's "friends" or even Kerry's for that matter. I am not trying to say they are clean in ANY WAY SHAPE or form, but heaven forbid I suggest the same about your Hero, George Bush. My point was that your friends can EASILY do things you don't like or approve of. Apparently, that doesn't happen in your happy fantasyland. Secondly, how in the hell did Bill Clinton come up, and why is he a nice safe exit for you and the like everytime someone talks about Bush, can you do everyone a favor and never bring up Clinton again, please? No. Just STFU about Clinton, and I bet you are the first to criticize the media the next time a Clinton Story is aired, even though you yourself can never shut up about him. I don't need a "lets compare him to Clinton" game everytime I bring up Bush. Then who can he be compared to, if not the previous President? YOU are the one running around making the most asinine comments this side of Kamui's heyday. Why not put a little more thought into your asinine theories and beliefs and a little less in your attempt to bash anybody who calls you on how ridiculous you sound? -=Mike Share this post Link to post Share on other sites
NoCalMike 0 Report post Posted July 8, 2004 My point was that your friends can EASILY do things you don't like or approve of. Apparently, that doesn't happen in your happy fantasyland. If I had a friend that ripped off hundreds of people and covered it up to line his own pockets with Cash, I don't think I could EVER call that person a friend again. And as far "my assinine" comments, so far in that thread you seem to be the only one that has expressed that opinion, so drop the "anyone who" Share this post Link to post Share on other sites
