Former Enron executive pleads guilty
A former Enron executive has pleaded guilty to insider trading, making him the highest-ranking official to do so to date.
David W Delainey, the former chief executive of Enron North America and Enron Energy Services, has pleaded guilty in Houston’s federal court.
He was alleged to have used the massive trading profits generated from the electricity crisis in California as a back-up fund to cover up loses in other Enron business units.
Based on his insider knowledge it was further alleged that he sold millions of dollars of company stock at inflated prices.
Delainey has agreed to cooperate with the government in what could be a key step in bringing charges against former chief executive Jeff Skilling.