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SEC complaint may lead to Skilling
Former Enron CEO may be hit with fraud charges as part of regulators' probe into broadband unit.
May 15, 2003: 7:02 AM EDT

NEW YORK (CNN/Money) - A Securities and Exchange Commission complaint against former Enron executives may be used to bring fraud charges against its former CEO Jeffrey Skilling, according to a published report Thursday.

The complaint details situations when executives from Enron's Broadband Services unit allegedly misled investors by touting success of the operation to investors, when they were aware of its actual difficulties, the Wall Street Journal reported.

Skilling was in attendance on some of these occasions and in some cases actively participated, the paper reported, citing people who attended the meetings.

The SEC alleges the information presented about the broadband unit led investors to "erroneously conclude" that Enron possessed "ground-breaking network control software," when in fact it was a "running joke" among Enron officials because it never worked as presented, according to the Journal.

In order to prove fraud against Skilling, government prosecutors must show that he knew his statements were false and misleading at the time he made them, the paper reported.

Prosecutors will also claim that Skilling profited from the misrepresentation, despite a regular stock sales program, as he sold 1.3 million Enron shares from Dec. 1998 to July 2001 for $70.7 million, according to the Journal.  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.