A former senior Enron executive was expected to plead guilty yesterday to charges that he used massive trading profits from California's electricity crisis as a slush fund to cover up losses in other business units Enron was touting to investors.
Mr Dave Delainey, who headed two of Enron's largest divisions - Enron North America and Enron Energy Services - was also set to admit to selling millions of dollars worth of company stock at inflated prices, based on his insider knowledge of the scheme.
The case sheds fresh light on the way in which Enron seized on the electricity crisis in 2000 that cost California's taxpayers billions, in order to push up its own share price.
It could also mark a breakthrough in one of the most high-profile white-collar crime investigations of the era, because Mr Delainey has agreed to co- operate with the Securities and Exchange Commission and the Department of Justice in exchange for leniency. He will also repay $8 million (€6.8 million) in ill-gotten profits.
Despite charging about two dozen former Enron executives, authorities have been frustrated so far in their efforts to penetrate the most senior ranks of the company. - (Financial Times Service)
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)