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.
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