New Headaches For Enron
FBI agents and federal prosecutors are investigating the possibility that Enron and other companies conducted fraudulent electricity trades from 1999 to 2001 which resulted in the manipulation of power prices in California, Oregon, and Washington.
The case is being presented to a grand jury in California. Prosecutors are attempting to determine whether former Enron CEO Jeffrey Skilling and former president and head of trading, Greg Whalley were aware of the fraudulent trades and attempted to conceal them.
Two years ago California, Oregon, and Washington experienced an ongoing series of rolling electricity blackouts, and millions of consumers faced large rate increases for their power usage.
The current investigation could result in criminal charges for several Enron executives and traders, and represent a new direction of possible litigation for the troubled energy company. At least two Enron traders have already invoked their Fifth Amendment privileges and refused to testify in lawsuits relating to the West Coast power crisis.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.