Ex-Enron Exec Settles with SEC

NEW YORK -- Former CEO of Enron North America and Enron Energy Services, David Delainey, agreed Thursday to settle fraud charges filed by the Securities and Exchange Commission and the Justice Department, CNN/Money reported.

The former Enron unit CEO, who agreed to cooperate without admitting or denying guilt, will be barred from serving as an officer or director of a public company and has been ordered to pay a $3.74 million civil penalty, according to the SEC. The settlement agreement is subject to the approval of the U.S. District Court.

Delainey also entered a guilty plea and forfeited approximately $4.26 million in unlawful proceeds in connection with a criminal charge filed by the Justice Department's Enron Task Force, the SEC said.

The complaint against Delainey, who worked for Enron in various capacities from May 1994 to March 2002, alleged he took part in the manipulation of Enron's publicly reported earnings intended to produce false and misleading financial results.

-- NYSSCPA.org News Staff

Posted on 10/30/03