Skilling’s desire to give Fastow more responsibility at Enron -- not concerns about conflicts of interest -- prompted Fastow to sell his interest in LJM, Skilling told the board lawyers. The memo read, “Skilling asked Fastow whether he was prepared to take on more responsibilities, which would not be possible if Fastow remained involved with LJM. The next day, Fastow said he wanted to remain with Enron and agreed to withdraw from LJM. Skilling knew of no other reason for Fastow’s withdrawal from LJM. He and Fastow did not discuss discomfort with Fastow’s dual roles, and in Skilling’s view that was not a factor in their decision, although the external world was becoming more sensitive to the issue.” (Los Angeles Times, March 19, 2002)
In another interview summary, Wes Colwell a senior Enron accountant, indicated that the Raptor investments in one of the partnerships were Skilling’s idea. Colwell said that in 1999 his boss, Richard Causey, told him, “Jeff Skilling wanted to create a vehicle to hedge Enron holdings in technology stocks.” (Los Angeles Times, March 19, 2002)
-------------------------------------------------------
I would conclude Colwell made a deal with Feds to name names and give up critical info in exchange for a lighter penalty.
We will no doubt find out what he spilled at Fastow's trial. Fastow was the brain trust bedind the thousands of offshore accounting entities that held (and hid) Enron's massive debt off the books.
Ex-CFO Fastow was indicted on 78 counts. His wife (who was once employed at Enron) was also indicted. Seems Fastow let her and other family members profit from Enron deals although they wre not employed at Enron.
That must have made all the low-level Enron employees who got screwed out of jobs and pensions feel mighty good.