Friday, February 03, 2006
Former Enron IR Exec Details More Fraud
The former head of Enron's investor relations (IR) department testified Thursday that one-time top executives Kenneth Lay and Jeffrey Skilling hid problems from investors related to company’s broadband operations and retail-energy units to keep the stock aloft, according to The Wall Street Journal.
In his second day of testimony, Mark Koenig said the retail-energy business had huge losses, and that revenue reported by the broadband unit in late 2000 and early 2001 did not come from customers using the network, but rather from selling parts of the network or from investments, noted the paper.
"The message I had from accounting and others was [that] the details were not to be discussed publicly," Koenig reportedly testified. He also said that in early 2001, Enron's retail-energy operations lost $230 million, but investors were told in earnings announcements and conference calls that the business was thriving. The earning releases and conference calls, said Koenig, were authorized or conducted by Enron's two top executives reported The Journal.
posted by Brian Moran @ 9:26 AM