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Creditors Given Permission to Sue Former Enron Execs
Ten of Enron Corp.’s former top executives, including Chairman Kenneth Lay, CEO Jeffrey Skilling and CFO Andrew Fastow, now face lawsuits by creditors after the U.S. Bankruptcy Court overseeing the company’s case gave its permission. The lawsuits would be handled in Texas district court.
U.S. Bankruptcy Judge Arthur Gonzalez authorized the creditors to file lawsuits on behalf of Enron alleging fraud and breach of duty, among other offenses. Nearly 70 subpoenas have already been issued after a study was done, according to one of the creditors’ committee’s lawyers.
Also included in the authorization were lawsuits against former Chief Risk Officer Richard Buy, Chief Accounting Officer Richard Causey, and five other individuals: Michael Kopper (who has already pleaded guilty to fraud and money laundering), Ben Glisan Jr., Kristina Mordaunt, Kathy Lynn and Anne Yeager-Patel. Kopper is cooperating with federal investigators as they continue their probe of Enron.
Glisan, Mordaunt, Lynn and Yeager-Patel were involved in the special purpose entity set up and once managed by Fastow that was known as Southampton, which is under investigation by the Department of Justice.
“As a result of its investigations, the committee has determined that, among other things,” {some Enron executives]”engaged in wrongdoing and misconduct,” said Luc Despins, a committee lawyer. Any of the money that is won through the lawsuits would be added to the assets that creditors eventually would divide when the bankruptcy process is completed.
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