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)
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