Corporate Crisis Update. Carolyn Hotchkiss and Eli Bortman Babson College Updated September 2005. David Duncan pled guilty to obstruction of justice in shredding Enron Documents. Sentencing deferred until he testifies in other cases.
Carolyn Hotchkiss and Eli Bortman
Updated September 2005
Andersen Partner David Duncan
Dr. Samuel Waksal
Broker Peter Baconovic
Broker’s Assistant Douglas Faneuil
Former CEO Dennis Kozlowski
Renoir’s “Fleurs et Fruits”
Former CEO Ken Lay
CEO Jeff Skillings
Enron civil suits settled, so far, against the following defendants …………
Myers pled guilty to fraud, got 1 year.
Ebbers was convicted in July 2005, sentenced to 25 years, is free pending appeal
Scott Sullivan pled guilty, testified against Ebbers, got 5 years.
WCOM declared bankruptcy, reorganized in Chapter XI, changed name to MCI, was acquired by Verizon.
Controller David Myers
CFO Scott Sullivan
Citigroup $2.6 billion
Sept. 2005 –
J.P. Morgan Chase $2.0 billion,
Deutsche Bank, $325 million;
Andersen, $65 million;
former directors, $55 million;
Ebbers, $45 million.
Worldcom Investors’ suits --- $6.1 billion in settlements approved by court:
Bondholders will recover $426 per $1000
Stockholders will recover $0.56 per share
Analyst Jack Grubman
Telecoms and Media