16 Stories

Enron's Skilling to Cut 10 Years Off Sentence

Former CEO might be out in 2017

(Newser) - Remember the great Enron collapse of 2001? Former CEO Jeffrey Skilling has been in prison for more than six years now on convictions of fraud, conspiracy, and insider trading at the now-defunct energy giant. But freedom might be near, reports the Wall Street Journal . Skilling has struck a deal with... More »

Enron Whistleblower Finally Gets His Sweet Reward

More than 10 years later, he collects $1.1M from IRS

(Newser) - Two years before Enron’s 2001 implosion, a whistleblower tipped off the IRS to the company’s abusive tax shelters and fictitious income. Now that whistleblower is finally getting his reward, to the tune of $1.1 million from the IRS, the Washington Post reports. He remains anonymous, but his... More »

Son of Former Enron CEO Found Dead

Jeffrey Skilling's youngest son was a college sophomore

(Newser) - The 20-year-old son of former Enron CEO Jeffrey Skilling has been found dead in his apartment, wire services are reporting. John "JT" Skilling had been a sophomore at California's Chapman College, and friends got suspicious when they hadn't heard from him in a while. No cause of death has... More »

High Court Strikes Part of Sarbanes-Oxley

Roberts says oversight board violated separation of powers

(Newser) - The Supreme Court has struck down part of the anti-fraud Sarbanes-Oxley law enacted in response to Enron and other corporate scandals from the early 2000s. The justices, in a 5-4 vote today, say that Sarbanes-Oxley violates the Constitution's separation of powers mandate. The court says the president must be able... More »

Posse Helped Tiger Woods Sneak Around

Small group of friends cautioned golfer, then circled the wagons

(Newser) - The small group of friends who make up Tiger Woods' inner circle warned the golfer his extramarital shenanigans were going to cause trouble, but he ignored them—and they've stuck with him through the explosive revelations that are threatening to sink his career. "We said, 'You've got to be... More »

Supreme Court to Hear Enron CEO's Appeal

Jeff Skilling challenges 'honest services' law, says trial was unfair

(Newser) - The Supreme Court has agreed to hear former Enron CEO Jeffrey Skilling’s appeal of his fraud conviction in connection with the company's collapse. The appeal argues that the federal “honest services” statute, a favorite for prosecutors tackling white collar criminals, is flawed because the government needn’t prove... More »

These Kooks Aren't Fooling Anyone

(Newser) - The “wild-eyed rants” reverberating through town hall meetings are pretty amusing. But do Republicans “really think the country is dopey enough to mistake microwave mobs staging Potemkin village protests” for actual American rage, asks Scot Lehigh of the Boston Globe. “If so, they’re delusional.” These... More »

Financial Fraud Investigations Overwhelm FBI

Enron-style crisis in mortgage, bailout cases looms

(Newser) - The mortgage crisis and the billions of bailout dollars finding their way into circulation have spawned a surge in fraud cases that already is straining federal law enforcement resources, reports the Los Angeles Times. The FBI is stretched to the limit by 2,300 current investigations—but just 38 are... More »

Gramm Guilty of Sparking Subprime Mess

Ex-senator still has clout despite dire deregulation

(Newser) - Former Senator Phil Gramm helped create the subprime meltdown, yet faces no punishment—and could even become treasury secretary if John McCain wins in November, David Corn writes in Mother Jones. Eight years ago, a Gramm bill stopped the feds from regulating insurance policies that protected Wall Street securities. These... More »

'Venal' Phil Gramm No Big Loss to McCain Camp

'Nation of whiners' quote simply the latest in a long string of bad moves

(Newser) - "Nation of whiners” adviser Phil Gramm was simply an "accident waiting to happen" for the McCain campaign, writes Max Blumenthal in Huffington Post. Blumenthal runs down the “reactionary, venal and destructive” senator’s foibles—which run from enabling Enron to investing in porn. Gramm “left a... More »

Bankrupt Lender's Audit Lapses 'Mind Boggling'

Bankrupt subprime lender, auditor ripped in report on business practices

(Newser) - Auditors at now-bankrupt New Century Financial—once one of the nation’s largest subprime lenders and one of the earliest to fail—were accused of “mind boggling” lapses in a Justice Department report on the debacle released yesterday. Partners at accounting firm KPMG are said to have ignored “... More »

Court Rejects $40B Suit from Enron Investors

Plaintiffs claimed banks abetted fraudulent deals

(Newser) - The Supreme Court yesterday turned away an appeal from Enron investors seeking to sue banks that loaned the company money, Bloomberg reports. A lower court ruling had blocked the investors from organizing a $40 billion class-action suit against Merrill Lynch, Credit Suisse and other banks. The investors accused the banks... More »

Court Limits Investors' Suits Over Fraud

Justices side with big business in important securities case

(Newser) - The Supreme Court today made it harder for defrauded investors to sue to get their money back. The court limited the ability of investors to sue third parties—accountants, bankers, and lawyers, for example—who help a company commit securities fraud. The 5-3 ruling, considered one of the most important... More »

Ex-Enron Chief Not Guilty, Widow Says

Feds want $13M from his estate, but must re-prove crimes

(Newser) - Ex-Enron chief Ken Lay is innocent, and the feds shouldn't drain $13 million from his estate in a civil suit—at least not according to his widow. Linda Lay's filing today denies "any criminal activity on the part of Kenneth L. Lay, including his alleged participation in securities fraud,... More »

Brit Enron Bank Grafters Plead Guilty

'Natwest Three' confess to fraud charge in plea bargain

(Newser) - Three British bankers confessed to an Enron scam in Texas yesterday, admitting to a single charge of transatlantic wire fraud as part of a plea bargain. They'll now have to pay back the $7.3 million the scam netted. The "Natwest Three" said in a statement they hoped this... More »

Subprime Crisis Sparks a Spate of Legal Battles

Investors, homeowners, banks head to court, but obstacles lie ahead

(Newser) - The troubles plaguing Countrywide and Bear Stearns’ hedge funds will move from the boardroom to the courtroom. Homeowners and banks are suing mortgage lenders, shareholders are suing funds, the SEC is investigating executives, and Congress may conduct hearings into credit agencies' practices. The current mess ensnares “an incredible range... More »

16 Stories