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Lawmaker questions Skilling
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February 11, 2002: 5:50 p.m. ET
Document from LJM annual meeting shows Skilling was present.
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NEW YORK (CNN/Money) - A key lawmaker cast further doubt Monday on the testimony from former Enron CEO Jeffrey Skilling, who claimed he did not know that the energy trader used its off-the-book partnerships to hide nearly $1 billion in debt.
Rep. John Dingell (D-Mich.), ranking member of the House Energy and Commerce Committee, sent a letter Monday to Skilling's attorney, Bruce Hiler, where he pointed to a document from an October 2000 meeting that shows the former CEO had knowledge that transactions were used to inflate profits at Enron.
The document, obtained by CNN/Money, is a presentation from the annual partnership meeting of LJM investments, one of Enron's many corporate partnerships. Enron's use of obscure partnerships was instrumental in the energy trader's collapse, and the company filed the largest bankruptcy in United States history last December.
"The document presented to the LJM partners makes it clear that the acceleration of earnings recognition of Enron is one of the purposes of the partnership," Dingell said in the letter Monday.
Skilling, in testimony to Congress last week, claimed he did not know that the partnerships were used by Enron to hide debt. However, the LJM document shows that Skilling was present at the October 2000 meeting and is even advertised as a guest speaker.
The purpose behind the LJM partnerships was to accelerate projected earnings and cash flow, the document said in a page entitled "LJM Rationale: Why does Enron need private equity?"
Another page shows that 89 percent of LJM2's investments were related to Enron. Several Enron employees — including ex-CFO Andrew Fastow and former officer Michael Kopper -- were listed as LJM representatives.
Dingell, in his letter to Skilling's attorney, cited the appearance of Amy Flores, a former LJM office manager, who appeared on ABC News last Friday. Flores said she made the hotel reservations for Skilling and that the former CEO made a speech to partners to "reassure them that Enron was behind the venture," Dingell said in the letter.
Skilling's attorney, Hiler, later said that the executive had only made a speech at the meeting and then left. "According to Mr. Hiler, you were at the hotel for only about 45 minutes," Dingell said.
The LJM document supports a report from Enron's independent directors that the company's use of the partnerships "resulted in substantial recognition of income and the avoidance of substantial recognition of loss."
Rep. Dingell sent Skilling a set of questions regarding LJM's annual meeting in October 2000 that will be included as part of the former CEO's testimony record from the Feb. 7 hearing. Answers to the questions must be returned no later than Feb. 25, the Congressman said. 
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