EBS execs arrested

As expected, the feds arrested two Enron Broadband Services executives and charged them with a variety of fraud-related offenses for their role in the whole EBS/Blockbuster/movies-on-demand fiasco. As is so often the case with these Enron arrests, there's a nugget of comedy gold buried in there:

Kevin Howard, former chief financial officer of Enron Broadband Services, and Michael Krautz, former EBS senior accounting director, were charged with securities fraud, wire fraud, conspiracy and making false statements to FBI agents.

[...]

Howard and Krautz turned themselves in to the FBI Wednesday morning and appeared before U.S. Magistrate Judge Marcia Crone. Each was released on $500,000 bond, secured by Krautz's 401(k) account and Howard's stock holdings.

Clearly, neither of them was sufficiently invested in Enron stocks if their portfolios are capable of covering these bonds.

As Skimble notes, these guys are just small fry. Is this another example of prosecutorial bootstrapping?

Asked why some midlevel employees are being charged but no top executives, Enron Task Force leader Leslie Caldwell said she would not comment on specific targets of the investigation.

"We are looking at everything," Caldwell said, "We are looking at everyone."

I parse that answer as "No, dammit, this is the best we can do", but you're welcome to disagree with me.

Posted by Charles Kuffner on March 13, 2003 to Enronarama | TrackBack