Ex-Enron executives sentenced to probation for electricity market manipulation

[JURIST] A federal court in California sentenced two former Enron [JURIST news archive] executives Wednesday to probation for their roles in Enron's manipulation of electricity supplies during the 2000-01 West Coast energy crisis. Timothy Belden [Wikipedia profile], former head of Enron's West Coast power trading who pleaded guilty [plea agreement, PDF; WSJ report] to deliberately submitting false data to California electricity operators to drive up Enron's profits, was sentenced to two years of probation. He must also pay a $10,000 fine. Another former Enron employee, Jeffrey Richter, was also sentenced to two years probation and ordered to pay a $10,000 fine for conspiracy.

A third former Enron trader, John Forney, pleaded guilty in 2004 [JURIST report] for conspiracy to commit similar profit drives. He is expected to be sentenced next month. Belden, Richter, and Forney are the only three ex-Enron traders to be charged with manipulating the California market. The Houston Chronicle has more.



 

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.