Monday, April 18, 2005
The prosecution of five former executives of Enron's broadband services unit (EBS) for securities fraud, conspiracy, and money laundering gets under way today in Houston. That unit tried to set up a trading market for broadband similar to the much larger energy trading unit at Enron, and for a while EBS gave Enron the cachet of being an internet company. The broadband market never took off, and EBS shut down when Enron collapsed. The defendants are Joe Hirko, former co-CEO of EBS, Scott Yeager, Rex Shelby, Kevin Howard, and Michael Krautz (indictment here). Two other former executives entered guilty pleas and will testify for the government. Jury selection begins today before U.S. District Judge Vanessa Gilmore, and an article in the Houston Chronicle (here) discusses the start of the trial.