Today in Texas History – May 25

Investor Juan: March 2012

From the Annals of White Collar Crime – In 2006, Chairman Kenneth Lay and CEO Jeffrey Skilling, the top honchos at Enron Corporation, were convicted of conspiracy, insider trading, securities fraud and making false statements to securities regulators – actions that resulted in the collapse of the one-time energy giant.  The Enron scandal affected as many as 20,000 employees – costing many of them their life savings; it also caused massive losses to outside investors.  Lay, who seemed somewhat repentant and humbled by the extent of the accounting scandal that affected thousands of lives, would die in his luxurious Aspen home before ever seeing the inside of a prison cell.  Skilling, who remains adamant as to his lack of wrong-doing despite numerous books and articles that exposed him as the rotten center of the massive Enron fraud, also remains in federal prison and is scheduled to be released in February of 2019.  Red gives props to the Bush Department of Justice for going after these crooks.  One of the major failings of the Obama administration was the failure to even attempt to prosecute those guilty of possibly even worse crimes that resulted in the 2008 financial meltdown.

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