Former Enron Corp. Assistant Treasurer Timothy Despain was charged in Houston federal court Tuesday with conspiracy to commit securities fraud and has agreed to cooperate with federal prosecutors investigating the company.
Despain, who worked at Enron from January 1999 to May 2002, waived being indicted by a grand jury and agreed to appear before a federal judge to plead guilty to one count of securities fraud conspiracy.
Charged with misstating Enron's finances to boost its credit rating, Despain's cooperation may assist the Enron Task Force in its effort to build a case against former Enron chief executives Kenneth Lay and Jeffrey Skilling, and six former Enron and Merrill Lynch & Co. employees currently on trial for the allegedly fraudulent sale of Enron energy barges.
. . .
Despain said he "falsely represented to credit rating agencies that Enron's cash flows from its nonregulated businesses were stable and predictable," he said. "The annual cash flow targets that Enron set for itself and reported to the rating agencies were arbitrarily based on what I and others believed was necessary to maintain Enron's investment grade credit rating."
http://www.sun-sentinel.com/business/local/sfl-zenron06oct06,0,4097953.story?coll=sfla-business-headlines
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