Enron
Enron
When I heard Jeffrey Skilling is going to be tried for his part in Enron's fall in 2001, I remembered a series of events...
Since mid-90's, Enron ran one of the most lucrative businesses of all time. The grow faster than any other company in their times, to place 7th in 500 Fortune in 2001. The giant energy trader gradually sank into financial troubles, led by executive corporate scandals ranged from inside trading to off balance sheet arrangement's to hid debt and "fatten" profits.
Keneth Lay, former Chairman and CEO of the Enron prior to its collapse, used his constitutional right of "Fifth Amendment" to refuse testifying before congressional investigation panel and therefore avoid self-incrimination.
At that time, tons of media accusaction made against US system of allowing them get away with the collaps, which wasted away large amounts of retirement plans invested in the company! One thing in particular: Ken Lay is close friend of Bush family. Mass of media attention was drawn to the fact that two Texan businessmen were once, and still are, friends.
But when he got arrested in July 2004, there was little attention to "where all that connection go?" type of questions. He was arrested only after Andrew Fastow confessed to conspiracy, opening the way for Lay's and Skilling's arrests.
It was amazing, at least for me, how they apply their constitutional rights in USA. Prosecutors had no evidence against Ken Lay. He was entitled to use his "Fifth Amendment" right. He did and at that time they could not press charges. Once Anrew Fastow, who was the ring between Lay in the compan'y operation confessed to the irregularities emloyed by Enron to show higher profits, despite huge losses, he got arestted. He is free on bail to be tried in future.
