Wednesday, March 28, 2007
SEC Charges Two Enron Inhouse Counsel
On March 28, the SEC charged two former in-house attorneys of Enron Corp., Jordan H. Mintz, a former Enron Vice President and General Counsel of Enron's Global Finance group (EGF) and Rex R. Rogers, a former Enron Vice President and Associate General Counsel, in connection with a fraudulent scheme to make material misrepresentations in, and to omit material disclosures from, Enron's public filings. The Commission's complaint charges Mintz and Rogers with violating the antifraud and other provisions of the federal securities laws, and aiding and abetting Enron's violations of the antifraud and periodic reporting provisions. In addition, the complaint charges Mintz with violating the books and records and lying to auditors provisions, and Rogers with aiding and abetting violations of the insider stock sale reporting provision by Enron's then Chairman, Kenneth Lay. Mintz, as General Counsel of EGF, was responsible for managing the related party disclosures in Enron's 2000 Proxy Statement (incorporated in its 2000 Form 10-K) and second quarter 2001 Form 10-Q, and closing a fraudulent related party transaction while knowingly or recklessly disregarding that the transaction was in fulfillment of a secret oral side agreement. Rogers, as Enron's top securities lawyer, was responsible for the timing and content of all Enron's SEC filings.