In fact, Borget and Mastroeni were running a scam to make profits look bigger than they actually were by creating trades with dummy corporations, enriching themselves in the process through their mysterious account. When Florida Gas head became chairman of Transco Energy in 1981, he brought Lay to Houston. While working at Humble, Mr. Lay began to pursue a doctorate in night school at the University of Houston. The idea was a rollicking success and alleviated Transco's financial bind.
Lay made to employees and outside investors. Lay's work impressed many people, resulting in his being appointed deputy undersecretary for energy in October 1972, answering to the Secretary of the Interior Rogers Morton. Although some businessmen despised him, Lay remained a member of Houston's social elite, and people still listened to what he had to say. But when Kinder left and Skilling began his rise to the top, Lay's distance from daily operations, his dependence on the judgment of others and his tacit endorsement of a business culture in which bending the rules became a constant theme, ultimately would lead to the company's undoing — and in some measure to his own indictment in 2004. Internorth, an Omaha energy company, was fighting off a corporate takeover and, as a defensive maneuver, approached Mr. Skilling, 52, were found guilty of lying — to investors, employees and government regulators — in an effort to disguise the crumbling fortunes of their energy empire.
Skilling, and to a lesser extent, Mr. As such, while deals might take several years to actually earn money, their projected profits would be immediately counted against Enron's bottom line—showing profits where they had yet to be made. Lay's defense, most notably his own testiness on the stand and the sudden illness of his lead lawyer, Mr. In 1970, he graduated from the University of Houston with his Ph. He learned the value of money early, supplementing the family's meager income by delivering newspapers, cutting grass and baling hay. The most notorious of these companies were the Raptors, which bought and sold Enron stock, inflating the stock price.
They had five kids, David, Mark, Beau, Robyn and Elizabeth. I thought he was electable. Fastow, Enron's former chief financial officer, and his cadre of co-conspirators. Pushing the envelope The next decade saw Lay recruit the brightest people he could find, and he encouraged them to push the business envelope. The employees who owned the account, Louis Borget and Thomas Mastroeni, were given a clean bill of ethical health by Enron's board of directors.
Furthermore, the chief operating officer Skilling adopted the practice of semiannually firing the employees rated in the bottom 20 percent at the company; ratings were based primarily on the number of deals closed. Awash in money Of course, that was years away. Former chief executive officer and chairman, Enron Corporation Nationality: American. Several jurors said they would have liked to hear from more witnesses, in particular Richard A. Lay applied to the Navy's officer candidate school in Rhode Island and was accepted, heading out in January 1968.
He found work teaching night school at George Washington University after his enlistment expired, and he finished earning his PhD. He died while awaiting imprisonment, buoyed no longer by accomplishment or acclaim but by a faith born in his hardscrabble youth and a hundred homespun sermons. Judge Lake will have broad discretion in determining the former executives' sentences. Even so, Watkins feared for her life and consulted Enron's security department for help. In 1991, he told the that the long hours he spent perched on the tail end of a tractor left him time to think about business and industry, a world that shone with promise compared to the dreary prospects that confronted him at home. On November 5, 1997, Enron's board approved the creation of Chewco, an off-the-books dummy company created by Fastow. The merged company became loaded down with high-interest debt, used to finance the deal.
Lay on how much and how quickly the nation should deregulate electricity markets. Bonuses and salaries became dependent on the closing of deals—any kind of deals—and employees stopped working together, instead battling each other for the rights to each deal made. Lay helped to orchestrate the World Economic Summit in Houston at the request of the first President Bush. Those transactions were used to artificially prop up the company's profits, but prosecutors never seriously attempted to prove that Mr. A memorial service was held a week after, attended by 1,100 guests, including former President. This proved to be a hard sell, but Enron invested millions of dollars promoting the idea, winning its biggest victory in California, which opened both electricity and natural gas to the whims of the marketplace. When the industry was deregulated in 1985, the company was bought by InterNorth, based in Omaha, and the name was changed to Enron.
Skilling carries a maximum of 10 years. Still academically motivated, he obtained a Ph. In June 1999 Enron's board of directors allowed Fastow to serve as manager for Enron's dummy companies even while he continued to serve as Enron's chief financial officer. The company declared bankruptcy in December 2001. Lay, a key turning point came when Sherron S. On December 2, 2001, Enron declared bankruptcy.
His childhood was one of adult responsibilities, as he had to work driving tractors and plowing fields, during which time he would daydream about becoming rich in commerce. At the time of its collapse in December 2001, Enron's bankruptcy was the largest in U. In May the vice chairman of the board J. The job gave him insight not only into government energy policy but also the world of political power and money. While he was awaiting sentencing, he died on July 5, 2006 of a heart attack. He campaigned for the use of natural gas for generating power, noting that it was cleaner and cheaper than other fuels.