New Lows At The Chron

The Washington Post recently concluded a five-part series on Enron that deserves to be regarded as the definitive journalistic treatment of the Enron fiasco so far. And while everyone is innocent until proven otherwise, the article leaves little doubt that Andrew Fastow and Jeffrey Skilling were deeply involved in the shenanigans, and Ken Lay knew a lot more than he lets on.

But the dreadful Chron, which should have owned this story but instead preferred to continue to be Enron's cheerleader, is STILL going out of its way to defend the Enron criminals. The headline of Sunday's page one story is "Skilling feeling the heat; Ex-Enron CEO expects charges," but that's misleading. The story sympathetically portrays Skilling, even quoting his brother (who thinks Jeffrey is a really swell guy!). Here are some excerpts of the latest Chron-vomit, all thrown together (since there are apparently no editors at the Chron, what the hell does it matter if I rearrange the Chron-vomit):

"He definitely understands there is a strong risk of indictment," said his brother Mark, a lawyer and writer living in Istanbul, Turkey.

"He thinks he has committed no crime, but he understands in the political climate that exists now, anything is possible," Mark Skilling said.

Skilling has refused all interview requests for several months.

But his brother said, "If there is a criminal trial, he believes absolutely that he will be exonerated. I know him as well as anyone, and I certainly know he is ready to fight this as far as humanly possible."

Soon after his departure from Enron one year ago Wednesday, Skilling told a Chronicle reporter he was looking forward to a less stressful life, spending time with family, learning a foreign language, traveling to Africa, becoming a dirt bike master. It hasn't worked out that way.

"It has been the roughest time in his life so far, by any measure," said his brother.

Asked about his current routine, attorney Elizabeth Baird said, "Mr. Skilling is spending a great deal of time with his family. Much of the balance of his time is devoted to responding to government investigations into the collapse of Enron and defending the multiple legal actions to which he is now a party. "

Those close to Skilling said he feels there is so much pressure to hold him accountable for the people financially ruined at Enron that he could be charged even if evidence is inconclusive.

"Between now and the elections, he is not expecting much in the way of fair handling of his case," Mark Skilling said.

Skilling has maintained he relied on accounting firm Arthur Andersen's representations that the Raptor restructuring violated no rules.

The fact that Skilling did testify, while others cited Fifth Amendment protections, showed he believed he did nothing wrong, supporters said.

Attorney Bruce Hiler said Skilling may have overestimated the fairness of Congress and media outlets.

"It has become apparent that Congress and many media commentators are not interested in serious fact-finding but rather in an opportunistic blame game on the eve of an election."

Skilling's problem is that a complex federal fraud prosecution often becomes a feeding frenzy. "The only leverage anybody has in this is to hand them somebody up the ladder. Well, Skilling is at the top of the ladder," said one attorney close to the case.

Skilling raked almost $90 million out of Enron from salary, selling stock and cashing stock options between 1999 and the company's collapse, congressional investigators calculated. The fact that other stock and stock options worth about $170 million became worthless has elicited little sympathy.

Those vanished riches are now the least of the worries of a man who saw himself revolutionizing the way America did business.

Skilling now spends his time with his children, with a second wife he married in March, and in preparation for what could be a titanic, yearslong legal struggle.

Mark Skilling said his brother feels there has been almost a willful refusal to fairly consider his contributions.

"He saw himself as part of something that benefited many people, and that changed the way energy was traded. They created a brand new industry. Then they got creamed. But the industry will still be around because it was a good idea."

He added, "If Jeffrey could say something to the people of Houston, it'd be, `Continue to give me the benefit of a doubt, and give Enron the benefit of a doubt.' "

I've cut about 30 percent of the article, because really that's all just so much filler around these points: 1) Jeffrey Skilling is a victim of those mean Congressional investigators, who are out for blood; 2) Jeffrey Skilling REALLY is a good family man -- really! 3) Jeffrey Skilling is a brilliant man who revolutionized an industry, 4) Jeffrey Skilling is an incredibly dull man who didn't know that his devious subordinates and accounting firm were up to no good, and making him lots of money in the process (okay, so the Chron can't keep its story straight, even with ME editing their copy!); 5) All Jeffrey Skilling really wanted to do was become a dirt bike master; 6) Jeffrey Skilling may have made off with $90 million, but he got hurt too -- another $170 million of stock he held is now worthless *waah*; 7) Jeffrey Skilling REALLY is a good family man -- really; 8) Have I mentioned that Jeffrey Skilling is a good family man?

I cannot believe the crap this paper turns out on a daily basis.

And here's an additional bit of news, being reported by the Houston Business Journal: five Enron execs, including the wife of Jeffrey Skilling, have petitioned the bankruptcy court for extra pay ((she wants a cool $875,000 more; another wants $1.65 million more)! The gall of these people is astounding. I'm having a Jim Cramer-like moment, wondering if their attitude will change when (if?!) the feds finally slap the cuffs on some of them.

(08-13-02 Update) The Chron has more on the group filing for bankruptcy benefits. Here is an example of the brainpower (and morality) that was behind Enron:

And then there was the argument made by Traci L. Warner, a college recruiter for Enron who was on maternity leave when the company filed for bankruptcy.

Warner said she had an individual contract that specified she would be paid her salary even if the company filed for bankruptcy. Warner argued that she is owed $151,000, the value of her salary through the term of her contract, which expires in March 2003.

She said she did not believe her contract was terminated on Dec. 2. The letter announcing her firing was "ambiguous." Warner testified Monday that she continued working from home until Dec. 15, when her paycheck did not arrive and she realized she'd been laid off.

Yet, under cross-examination by Enron lawyer Lawrence Baer, Warner admitted that she also began receiving unemployment from the state of Texas on Dec. 15. Warner testified that she did not recall the Texas Workforce Commission asking if she was currently unemployed when she applied for benefits.

Ah yes -- I didn't know I was unemployed, but I knew enough to start drawing unemployment from the taxpayers!? THAT is convincing. Miss Warner is just a charming, brilliant young lady, isn't she? And one of the people responsible for hiring at Enron. Sort of fitting for the whole sham that once was, eh?

[Posted at 21:13 CST on 08/12/02] [Link]