Friday, June 09, 2006

ENRON TASKFORCE SET BACK -- A federal appeals court orders the release of two of Enron's bankers while they appeal their 2004 convictions. "The Fifth Circuit ruled that Daniel Bayly, Merrill’s onetime investment-banking chief, and Robert Furst, the Enron relationship manager for Merrill, could be released on bail while they appeal their fraud convictions in connection with the so-called Nigerian barge transaction. The government argued that Enron had falsely reported income from a bogus sale to Merrill of some electricity-producing barges off the coast of Nigeria. The government argued that because Enron guaranteed Merrill’s profits in the deal, Enron had improperly booked a $12 million gain. Bayly was sentenced to 30 months in prison, while Furst received a 37-month sentence."