PracticeAccounting FirmsEnron finance executive jailed for fraud

Enron finance executive jailed for fraud

Former Enron finance executive sentenced over 1999 accounting sham

A former mid-level Enron finance executive has been sentenced to nearly four years behind bars for his part in a bogus deal with Merrill Lynch & Co in 1999.

Link: Former Enron finance director convicted

Dan Boyle and four former Merrill Lynch executives were found guilty in November last year of conspiracy and fraud, and Boyle has now been given a sentence of three years and 10 months for his involvement in the sham.

Along with former Enron finance chief Andrew Fastow, he was involved in a scheme whereby power plants mounted on barges were sold to the brokerage and bought back by Enron over specified timeline – thereby making the sale appear as a loan on their books. This helped the energy company meet its Wall Street profit forecasts.

A former Merrill Lynch executive, Robert Furst, whose job it was to maintain a ‘good relationship with Enron’ has also been sentenced to three years and one month in jail.

After issuing the prison term, the US judge agreed to ask the federal bureau of prisons to order Furst to report to prison after he celebrates his 20th wedding anniversary on June 29.

Furst will have to pay $665,000 in fines and restitution, and Boyle, $320,000.

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