New Round of Indictments in EnronMay 1, 2003 | www.thestreet.com
Seven former Enron officials, former Chief Financial Officer Andrew Fastow, and his wife were named in new indictments alleging fraud at the fallen energy trader's broadband unit, among other things.
Lea Weingarten Fastow, a onetime assistant treasurer for the company, surrendered at an IRS office in Houston Thursday morning. She is charged with six counts, including conspiracy to launder money, filing false tax returns and conspiracy to commit wire fraud.
Six former employees of the company's Internet division gave themselves up at an FBI office in Houston. They include the former co-chief executives of Enron Broadband Services, Ken Rice and Joe Hirko; Kevin Hannon, the unit's chief operating officer; Dan Boyle, vice president; Ben Glisan, treasurer; and F. Scott Yeager, another executive.
Andrew Fastow was reindicted on 31 new counts, bringing the total number he faces to 109. Fastow already pleaded innocent to the accounting fraud that laid low the energy trader in December 2001, costing investors billions of dollars.
The former broadband unit workers were said by the SEC to have personally reaped more than $150 million in unlawful profits. They are charged with misleading investors about the operation's prospects when its business model "was not commercially viable," the SEC said in a release.
"The actions described in the amended complaint illustrate the lengths to which some at Enron would go to create the illusion of stellar financial performance," said Stephen M. Cutler, director of the SEC's Division of Enforcement. "It is especially reprehensible that these defendants opted for their own financial well-being at the expense of Enron's shareholders."