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Apr12
Enron and Skillings:Hindsight is 20/20
Hindsight is indeed 20/20.  Today was former Enron Corp. chief executive Jeffrey Skilling’s third day on the stand defending himself against federal fraud charges. While he admitted to no wrongdoing he did toss out the admission that the secretive LJM partnership deals that eventually led to the company's downfall were a "horrible idea." Congratulations on that discovery Jeff.  Unfortunately, it cost investors billions of dollars and thousands of employees their jobs and loss of pension benefits.

Skilling is up against 28 counts of fraud.  Government prosecutors are presenting a case alleging that Skillings oversaw fraudulent accounting methods to hide mounting losses at the company. The off-the-books partnerships were designed to bury losses and inflate earnings of Enron.

In a Washington Post story, Skilling doesn’t still see exactly 20/20.

“Skilling repeatedly testified that he never engaged in illegal activity at Enron. Asked by Petrocelli what he would have done if he had discovered an Enron employee breaking the law, Skilling said, "I would have called the FBI."

Talk about the fox guarding the hen house.

For more on ethics in business read CoreCharacter.

Up for an Enron joke?

 


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