Similar Business Practices By Enron
"Fat Boy": This scam (aka "Inc-ing") also involved overscheduling power transmission – for example, to a company subsidiary that didn't really need all of it. Then Enron would sell the "excess" power to the state at a premium.
"Ricochet": Also called "megawatt-laundering" (by analogy to money-laundering), Ricochet was the power equivalent of a real-estate land flip: buy in-state power cheaply, flip it out-of-state to an intermediary, then re-sell it to California at a highly inflated "imported" price.
John Forney, a former energy trader who invented various strategies such as the "Death Star," was indicted in December 2002, on 11 counts of conspiracy and wire fraud. His supervisors, Timothy Belden and Jeffrey Richter, have both pleaded guilty to conspiring to commit wire fraud and currently are aiding prosecutors in investigating this scandal. On August 5, 2004 John Forney plead guilty to conspiracy to commit wire fraud and in 2007 was given 2 years probation and a $4,000 USD fine.
Read more about this topic: Death Star (business)
Famous quotes containing the words similar, business and/or practices:
“We do not need to minimize the poverty of the ghetto or the suffering inflicted by whites on blacks in order to see that the increasingly dangerous and unpredictable conditions of middle- class life have given rise to similar strategies for survival. Indeed the attraction of black culture for disaffected whites suggests that black culture now speaks to a general condition.”
—Christopher Lasch (b. 1932)
“The point is that nationalism, even in its latest madhouse frenzies under Mussolini and Hitler, is still, like advertising, an arm of big business. Nations as we know them today, were the invention of business and it is natural that business should still consider itself slightly above patriotism and that the strongest international should still be the international of profits.”
—John Dos Passos (1896–1970)
“Money made through dishonest practices will not last long.”
—Chinese proverb.