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Former Enron executive sentenced

Date Class
13th May 2005 Fraud Investigation
 
Details
A former Enron finance executive has been sentenced to three years and 10 months in prison for his role in a bogus deal to boost earnings.

Dan Boyle was sentenced alongside former Merrill Lynch bankers Robert Furst and William Fuhs, who will both serve three years and one month.

Enron fraudulently recorded the 1999 contract as a $12m (6m) profit.

The former energy giant went bankrupt in December 2001 with massive debts after mass frauds were discovered.

Under the fraudulent deal orchestrated by Mr Boyle, Enron sold Merill Lynch electricity-producing barges in Nigeria, before later buying them back at a pre-set price.

Enron recorded the deal as a $12m profit, but under accounting rules it was actually a loan.

"I am the only one responsible for my acts and omissions ... I'm truly sorry," said Mr Boyle in a statement.

A number of former Enron employees are being tried in the US courts.

The company's former chief financial officer Andrew Fastow, seen as the architect behind the mass of fraudulent deals, last year struck a plea bargain with prosecutors that is expected to see him eventually serve a 10-year prison sentence.

Mr Fastow is also expected to testify against former Enron chairman Ken Lay and chief executive Jeffrey Skilling when their trail begins early next year.

 

 

 


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