Monday, June 1, 2009
A DOJ Press Release reports on Former Enron Broadband Chief Financial Officer Pleads Guilty to Falsifying Books and Records. "According to the terms of the plea agreement, Howard faces a maximum sentence of up to 12 months of home confinement at his sentencing." The press release states that "[i]n an attempt to generate earnings sufficient to meet the earnings target, Howard admitted that he and others at EBS structured a transaction known as 'Project Braveheart' designed to 'monetize' or book a portion of the anticipated hundreds of millions of dollars of future earnings from EBS’s agreement with Blockbuster in the fourth quarter of 2000." But the reality is that Howard had a hung jury the first time around and a conviction vacated the next time. Most likely the cost of trial, including the psychological cost, made this plea extremely attractive.
See also Tom Kirdendall, Houston ClearThinkers. Chalk up Another Trial Penalty Deal;Amir Efrati, WSJ Blog, Former Enron Exec Could Get Home Confinement After Plea