Federal authorities arrested and charged two Enron Corp. executives on Wednesday with fraud for allegedly creating $111 million in bogus earnings from a ballyhooed Internet video-on-demand venture that was a failure from its inception.
Separately, the Commodities Futures Trading Commission charged Enron and a former employee for allegedly trying to manipulate prices for natural gas. It also charged the Houston company with operating an illegal commodity exchange.
The U.S. Justice Department accused Kevin Howard, the former chief financial officer of Enron Broadband Services Inc., and Michael Krautz, the unit's former senior director of accounting, of fraudulently helping Enron record earnings in 2000 and 2001 from a deal with Blockbuster Inc. to provide video-on-demand.
The two men worked at the company until this week, although an Enron spokeswoman declined to say in what capacity. Howard and Krautz were charged with securities and wire fraud, conspiracy and making false statements to federal authorities, for which they face up to 25 years in prison if convicted.
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News source: Yahoo! News
