US alleges Enron, Merrill in Nigerian conspiracy

Reuters via Excite News ^ | Thursday May 1, 11:31 AM EDT

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WASHINGTON, May 1 (Reuters) - U.S. authorities said on Thursday that former executives of collapsed energy trader Enron Corp. (ENRNQ) conspired with investment bank Merrill Lynch & Co. (MER) to pad Enron's balance sheet in a scheme involving electricity power barges in Nigeria.

In announcing expanded charges brought against the former executives, the U.S. Justice Department said the executives worked with Merrill "to fraudulently improve Enron's balance sheet by illegally 'parking' poorly performing Enron assets."

The assets, consisting of power barges moored off the coast of Nigeria, were the subject of extensive Senate investigations some months ago. The Justice Department announced new charges on Thursday against former Enron Chief Financial Officer Andrew Fastow, his wife and seven other ex-Enron officials of fraud and other criminal violations in connection with the Texas-based company's December 2001 collapse

[leadpencil1]

They probably sent out letters like this

Request for urgent business relationship. First, I must solicit your strictest confidence in this transaction. This is by virtue of its nature as being utterly confidential and 'top secret'. I am sure and have confidence of your ability and reliability to prosecute a transaction of this great magnitude involving several large barges off the cost of Nigeria. ........"Naturally, you will be amply rewarded for your assistance by retaining a percentage of the funds transferred; however, in order to facilitate the procedure your financial assistance is required up front."

Ha, what a bunch of losers!

[drypowder]

On the news today (5/1/03)the Feds anounced indictments of several of Enorn's top people but no mention of indictment for Ken Lay. Just curious, anybody know why Ken Lay has so far escaped federal indictment?

[kcvl]

It is unclear how effective the latest charges will be in helping prosecutors make cases against Enron's inner circle.

In the past, they won cooperation from executives in the company's finance department, which led to an indictment of Andrew Fastow, the former chief financial officer. But Mr Fastow, despite the weight of the charges against him, has not agreed to cooperate. Their pursuit of Ken Lay, the former chairman, on possible insider trading charges, has also stalled.

[Chancellor Palpatine]

You mean it might not have all been a scam?

[kcvl]

Ken Lay played golf with Bill Clinton. Clinton helped Ken Lay get a $3 billion power plant project in India for Enron. Four days before the deal went through, Enron gave $100,000 to the Democratic party.

Joe Lieberman was the first to call for an investigation, but now it's come out that his staff met with Enron, in fact his former top aide was an Enron lobbyist.