Tuesday, March 15, 2005

Bernie Ebbers Convicted of all Charges

Good News. Forbes has reported that Bernie Ebbers of WorldCom has been convicted on all charges. His "I didn't understand all that accounting stuff." defense did not fool the jury. He was CEO and he was responsible for all his company did or failed to do.

Interesting that the Forbes poll has (as of now) 263 of 364 voters who think it was the correct decision.

Ken Lay of Enron should feel a real chill at this time. I'll bet his lawyers are talking "Deal!" even now.

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March 16, 2005

Jeralyn Merrit of Talkleft has a different take on how the Ebbers conviction is likely to effect the Ken Lay trial. Jeralyn is a Defense Attorney so hers' is clearly a much more informed opinion than mine is.

She thinks that the relationship between Ebbers and Sullivan was clearly more one of supervisor - supporting subordinate than was true of the relationship between Lay and Fastow. She states that Ken Lay was, in fact, more of a hands-off CEO, and Andrew Fastow was more of an independent self-centered crook. The way the prosecution forced Fastow to turn on Lay is also a great deal more blatant and compelling than the way the WorldComprosecutors turned Sullivan.

I don't know if that matters much. The trial for Ken Lay will be held in January 2006 (as currently reported) and I think it will be in Houston. Enron dominated Houston in the 90's. Ken Lay strode across the city like a colossus. He built the company and a great many people in Houston tied their futures to his company.

When it went down, Ken Lay, Andrew Fastow, and Anderson Accounting were all considered responsible. It will be hard to find any jury in Houston who is not effected by the bad feelings the city still has and by the results of the Ebbers trial.

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