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A glance at the top players in Enron saga
Business |
2008/03/02 00:45
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KENNETH L. LAY
Birth date: April 15, 1942.
Career: Former chairman and CEO. Founded Enron in 1985 when his Houston Natural Gas merged with InterNorth in Omaha, Neb., and became chairman and CEO the next year. Stepped down as CEO in February 2001 when Jeffrey Skilling took over; resumed the role when Skilling abruptly resigned on Aug. 14, 2001. Resigned as chairman and CEO Jan. 23, 2002; resigned from board Feb. 4, 2002. Appeared before Congress in 2002 and invoked the Fifth Amendment. Alleged to have sold more than 4 million shares of stock for $184 million from 1996-2001. Received bonuses of $18.1 million in 1997-2000. Lives in a $7.4 million penthouse near downtown Houston.
JEFFREY K. SKILLING
Birth date: Nov. 25, 1953.
Career: Former CEO and director. Holds an MBA from Harvard and worked for McKinsey & Co. before joining Enron in 1990. Became president and chief operating officer in 1996, then succeeded Lay as CEO in February 2001. Resigned on Aug. 14, 2001, citing personal reasons. Testified twice before Congress in February 2002. Claimed no knowledge of intimate details of Enron's financial dealings. Sold 1.3 million shares of stock for $70.6 million and transferred 2 million shares back to Enron from June 1996 to November 2001. Received $13.2 million in bonuses 1997-2000. He remains a defendant in a lawsuit alleging he knowingly endorsed deceptive and misleading financial statements. An indictment was unsealed Feb. 19 charging him with 35 counts of fraud, conspiracy, filing false statements to auditors and insider trading. He has pleaded not guilty.
ANDREW S. FASTOW
Birth date: Dec. 22, 1961.
Career: Former chief financial officer who pleaded guilty Jan. 14, 2004, to conspiracy in a deal that called for a 10-year sentence and for him to help prosecutors in the investigation. Free on bond. One of Skilling's first hires in 1990. Indicted Oct. 31, 2002, on 78 counts of wire and securities fraud, money laundering, conspiracy and obstruction for running various financial schemes designed to enrich him, his family and friends. Counts later increased to 98. Earned at least $45 million from LJM partnerships, investment vehicles named after his wife and two children. Pushed out of Enron on Oct. 24, 2001, the day after Lay expressed confidence in him to analysts. Alleged to have sold more than 687,000 shares of Enron stock for $33.7 million from June 1996 to November 2001. Pleaded guilty in January 2004 to two counts of conspiracy; agrees to cooperate with prosecutors and serve 10 years in prison when his help is no longer needed.
RICHARD A. CAUSEY
Birth date: Jan. 9, 1960.
Career: Former chief accounting officer. Handled Enron audits for Arthur Andersen LLP before joining Enron. When the LJM investments were proposed to Enron's board of directors in 1999, he and chief risk officer Rick Buy were assigned to review all Enron transactions with LJM. Fired Feb. 14, 2002, after release of an in-house report noting his failure to review the deals. Mentioned repeatedly by title in Fastow indictment as having a secret agreement with Fastow that LJMs would never lose money on deals with Enron. Told David Duncan, the top Enron auditor at Arthur Andersen, that Enron didn't like another Andersen auditor's objections to grouping investment vehicles known as Raptors to hide that two of the four that were bleeding cash. Alleged to have sold about 209,000 Enron shares for $13.3 million. Also received bonus payments of more than $1.5 million from 1997-2000 when Enron was inflating profits and hiding debt based largely on the partnerships he was supposed to police. Indictment charging him with conspiracy and fraud unsealed Jan. 22, 2004. Expanded indictment unsealed Feb. 19 to include new charges against Skilling and increased charges against Causey; 35 counts for Skilling, 31 counts for Causey. Has pleaded not guilty.
OTHERS:
Michael Kopper: Former Fastow lieutenant who pleaded guilty Aug. 21, 2002 to federal conspiracy and money laundering charges related to Enron's fall and agreed to give up $12 million in illegal profits. Kopper admitted he ran or helped create several partnerships that earned him and others millions of dollars, including kickbacks he funneled to Fastow, while hiding debt and inflating profits at Enron. Has not yet been sentenced and is cooperating with prosecutors. Declined to testify before Congress.
Lea Fastow: Wife of Andrew Fastow and former assistant treasurer at Enron. Pleaded guilty May 6, 2004, to a federal misdemeanor tax crime for helping her husband hide ill-gotten income from the government. She originally pleaded guilty to a felony tax crime in January, but withdrew that plea in April. She was sentenced to the maximum of a year in prison and ordered to surrender there July 12.
Ben Glisan Jr.: Added to an expanded Fastow indictment unsealed in May 2003. Glisan became Enron treasurer in March 2000, and earned $1 million in May of that year on a March investment of $5,826 in Fastow's Southampton Place partnership. Also negotiated for Enron in some of its transactions with Raptor. Worked with Fastow and Kopper in creating and running LJM2. Fired from Enron in November 2001. Indicted in April 2003 on charges of wire fraud, money laundering and conspiracy to commit wire fraud, falsify books and commit securities and wire fraud. He tried to cut a deal with prosecutors, but ended up pleading guilty to one count of conspiracy in September 2003. He was immediately sentenced to prison for five years and became the first former Enron executive to serve time. He later began cooperating with prosecutors.
Dan Boyle: Also added to an expanded Fastow indictment. Charged with conspiracy to falsify books and commit wire fraud related to Enron's deal to have Merrill Lynch buy three electricity-generating power barges. Boyle's lawyer says he had no authority to sign off on anything. Fastow promised Merrill that Enron would buy back the barges in 2000, which it did, booking a $12 million profit that was really a loan. Trial set to begin Aug. 18. |
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Judge Delays Decision on Enron Funds
Court Watch |
2008/03/01 09:46
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Enron Corp. shareholders and investors hoping to get their cut of more than $7.2 billion recovered as part of a lawsuit they filed in connection with the company's collapse are going to have to wait a little longer. A federal judge on Friday delayed a decision on whether to approve a plan to distribute the money, part of a $40 billion lawsuit alleging that financial institutions that worked with Enron participated in the accounting fraud that led to the company's downfall. U.S. District Judge Melinda Harmon also held off on whether to approve $688 million in attorneys' fees being requested by San Diego-based Coughlin Stoia Geller Rudman & Robbins LLP, the law firm for the lead plaintiffs in the case. If approved, the attorneys' fees would be the largest in a securities fraud case. After a 4 1/2 hour hearing during which attorneys, Enron investors and former Enron employees argued both for and against the distribution plan and the attorney fees, Harmon said she would make decisions on both issues as soon as possible. Patrick Coughlin, attorney for the regents of the University of California, who are the lead plantiffs, called the plan to distribute the $7.2 billion "fair and reasonable." "The plan is doing whatever it can to help employees get whatever they can," he said. In general, the plan is calculating shares of the settlement fund using a formula that factors in such things as when a security was bought or sold, the purchase price paid and the type of stock that was bought. Enron stock sold for as much as $90 per share before plummeting to as low as $1 right before the company declared bankruptcy. But under the plan, shareholders and investors are set to get only a fraction of what they lost after the once mighty energy giant spiraled into bankruptcy. To be eligible for the settlement, investors and shareholders needed to have bought Enron or Enron-related securities between Sept. 9, 1997, and Dec. 2, 2001. About 1.5 million individuals are eligible to receive money from the settlement fund. Coughlin also asked Harmon to approve the $688 million in attorneys' fees, saying the amount is part of an agreement his law firm signed with the regents when it first took the case six years ago to be given 9.5 percent of any settlement. In justifying the fees, he cited several reasons, including that the 9.5 percent was far lower than the standard 33 percent most lawyers get in similar cases; the complexity of the lawsuit; and the risk involved in taking on a case that offered no guarantee of any settlements. "This is the largest class (action) settlement ever. There is no case comparable to this result," he said. But attorneys for several investors objected to the distribution plan and the attorneys' fees. Avi Garbow, an attorney for former Enron workers who lost money through the company's savings plan and employee stock ownership plan, said the distribution plan was unfair because it doesn't treat all investors and shareholders equally and some will be compensated more than they should be at the expense of others. Lawrence Schonbrun, who represents another investor, called the attorney fees being requested exorbitant and "an affront to every working person in this country." The $7.2 billion comes mostly from settlements made with such financial institutions as Bank of America, JPMorgan Chase & Co. and Citigroup. There are still several financial institutions that remain as defendants in the Enron case, including Merrill Lynch & Co., Credit Suisse First Boston and Barclays Bank PLC. Several former Enron officers also remain, including former chief executive Jeffrey Skilling. But the lawsuit has been on hold since an appeals court last year ruled shareholders and investors could not sue as a class, which would have allowed them to pool their resources to sue as a group and have more leverage to settle the case out of court. The U.S. Supreme Court in January refused to hear arguments in the lawsuit. The high court in a similar case gave a measure of protection from securities lawsuits to suppliers, banks, accountants and law firms that do business with corporations engaging in securities fraud. Attorneys for Merrill Lynch & Co., Credit Suisse First Boston and Barclays Bank PLC have said they will again ask Harmon to drop their clients from the lawsuit in light of the Supreme Court's ruling in the similar case. Enron, once the nation's seventh-largest company, entered bankruptcy proceedings in December 2001 after years of accounting tricks could no longer hide billions in debt or make failing ventures appear profitable. The collapse wiped out thousands of jobs, more than $60 billion in market value and more than $2 billion in pension plans. Enron founder Kenneth Lay and Skilling were convicted in 2006 for their roles in the company's collapse. Skilling is serving a sentence of more than 24 years. Lay's convictions for conspiracy, fraud and other charges were wiped out after he died of heart disease in 2006. |
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Young lawyer appointed Romanian justice minister
International |
2008/03/01 09:10
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Catalin Predoiu, a 40-year-old lawyer, has been appointed Romania's new justice minister. His appointment ends a lengthy struggle between Romanian head of government Calin Popescu-Tariceanu and President Traian Basescu.
The EU is closely following the development of Romania's judicial system, and therefore also the filling of this post. Dan Cristian Turturica comments: "We don't know much about Catalin Predoiu, but on the basis of his biography he seems a better choice than any of the other candidates put up by the Liberal Party so far. ...
The important difference between him and his predecessor Tudor Chiuariu is that the latter was a party activist whereas Predoiu has legal experience. In theory this means he won't have to do everything the party demands of him. ... On the other hand, ministerial posts are political jobs, and for Romania it has become crucial that they are occupied by experts - even if they are technocrats - because nowadays there are hardly any political dignitaries left who have both work experience and morals." |
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Erin Brockovich leads class action against Alcoa
Environmental |
2008/03/01 09:04
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American anti-pollution campaigner Erin Brockovich has announced that at least two American law firms are prepared to pursue Alcoa in the United States on behalf of residents who live near its alumina refineries south of Perth, at Wagerup, Pinjarra and Kwinana. The residents say their health has been adversely affected by emissions from the refineries. Simon Morrison from Shine Lawyers says the residents will not have to pay any money initially to join the claim. "The US law firms involved in this claim do operate claims on what we call a contingent basis, which means no fee is payable to them unless the claim succeeds," he said. "The next step for them is to obviously conduct some investigations of their own on the core issues surrounding the litigation. "That would then follow what we call a forum application, in other words, bringing the matter in front of a judge in America, to test that issue of whether this is a case that can actually be brought in the United States." Alcoa says any legal action will be vigorously defended. |
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Court rejects California limits on ship emissions
Environmental |
2008/02/29 08:47
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A federal appeals court Wednesday rejected a state regulation that reduced emissions from ships, dealing a blow to California's attempt to combat one of the major sources of smog-forming pollution in the Los Angeles region. The ruling means that the state must seek federal approval before imposing pollution limits on the thousands of cargo ships, cruise ships and other marine vessels that visit its ports. The U.S. 9th Circuit Court of Appeals in San Francisco ruled that California's new regulation is preempted by federal law. The Clean Air Act allows California to set its own standards for various vehicles and engines if it receives waivers from the U.S. Environmental Protection Agency. The state argued that in this case it didn't technically need a waiver, but the judges disagreed. Ships sailing into the ports of Long Beach and Los Angeles are considered a major source of particulates, nitrogen oxides and sulfur, pollutants that cause the region to frequently violate federal health standards. Microscopic soot from diesel engines can lodge in lungs, triggering heart attacks, asthma and other cardiovascular and respiratory problems, scientists say. Diesel exhaust has also been linked to lung cancer. The ruling is the second setback in two months to California's efforts to combat air pollution rather than wait for federal action. For four decades, the state has adopted its own regulations for cars, trucks, factories, consumer products and other sources of air pollution, often prompting the federal government to set similar standards. Microscopic soot from diesel engines can lodge in lungs, triggering heart attacks, asthma and other cardiovascular and respiratory problems, scientists say. Diesel exhaust has also been linked to lung cancer. The ruling is the second setback in two months to California's efforts to combat air pollution rather than wait for federal action. For four decades, the state has adopted its own regulations for cars, trucks, factories, consumer products and other sources of air pollution, often prompting the federal government to set similar standards.
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King Yaklin Wins $1M in Fee's, Georgia's Record
Court Watch |
2008/02/29 06:57
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A Superior Court judge has ordered a couple and their attorney suing Bishop Earl Paulk to pay more than $1 million in legal fees and court costs from a dismissed case.
Mona and Bobby Brewer sued Paulk and his church, then known as Chapel Hill Harvester Church in Decatur, asserting sexual misconduct. Mona Brewer claimed in the suit she had a 14-year coercive affair with Paulk.
The Brewers dropped their years-old suit last July, but each filed a separate suit in state court later in the year.
The judge entered the order last Friday for costs incurred by three different legal firms who defended Paulk in the Superior Court case.
Matthew Wilkins of King & Yaklin, one of Paulk's firms, said they are still reviewing the order and had no comment.
Louis Levenson of Levenson & Associates, the Brewer's attorney, said he has not seen the order. Levenson and the Brewers were ordered to pay the fees.
Paulk was one of Atlanta's preeminent preachers in the 1980s and 1990s. He had a church of 10,000 and an international ministry and TV program. A series of allegations of sexual misconduct plagued his work, and Paul lost influence and his ministry.
He still goes to the church, now called the Cathedral at Chapel Hill, but has dropped from public sight. Attendance on the mammoth campus has dropped dramatically.
www.kingyaklin.com |
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Court rules sex offender can't go home
Court Watch |
2008/02/29 06:44
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A convicted sex offender who was forced to move by a state law can't return home. He has no rights to the property because his wife owns it, a judge ruled.
The man, identified in court records as John B. Doe, had filed a lawsuit challenging a state law that prohibits convicted sex offenders from living within 1,000 feet of a school, public park or youth program center. Doe, who was convicted of child seduction in 2000 and released from probation the following year, was forced to move from his home near a church that offers youth programs. He argued that the law violated his rights by unfairly punishing him again. Judge Thomas Busch of Tippecanoe Superior Court ruled against Doe on Tuesday, noting that the home was owned by Doe's wife, not Doe, so his property rights were not violated.
Busch also noted similar challenges that had been defeated in other states. "Under the circumstances, the court finds that injunctive relief forbidding the prosecutor and sheriff from enforcing this law in this case is not in the public interest," Busch wrote in his 11-page ruling. Doe's lawsuit was one of three filed in Tippecanoe County challenging the law that forced 28 offenders in the area to move or be charged with a Class D felony. None of the three has succeeded in court. Doe's attorney, Earl McCoy, did not immediately return a message seeking comment left by the Journal & Courier of Lafayette. |
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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet. |
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