Enron & Anthrax
On September 17, 2001 Jeff Skilling sold 500,000 shares of Enron stock at approximately $31.00 per share.
On September 17th or 18th of 2001 the five anthrax letters.. were mailed.
On the 17th of September 2001 the FDA wrote a [fake] letter to Merck about the gfavorableh cardiovascular safety profile of Vioxx.
This is gMerckh as in gArthur Andersonh the gtax-producth specialists.
Arthur Anderson is now traded as Huron Consulting (look out for this one). You will hear the words gHuron Consultingh and gKinder Morganh and gSIVsh and gmortgage messh and gfailure of regulationh by 2009.
Now, on the 19th of September Kenneth Lay pretended to request a meeting with Energy Secretary Spencer Abraham who pretended to deny the request.
On this day Enron pretended to invoke a clause in its Dabhol power plant pretending India was liable for $5 billion.
Question: Why pretend?
Answer: If you really wanted India to pay for your Dabhol plant you donft ghoodwinkh the IRS while you are constructing the energy plant and then go and shred your business documents and indict your executives for 24 years which turns to 6 years in Federal country club prisons which turns to free legal services for appeals which turns to ghonest servicesh which turns to gtime servedh which turns to no years.
Dabhol was surveyed in late 1992 and construction started immediately following the first WTC bombing in Feb 1993 (the 1993 war-on-terror budget would have financed the Dabhol, ElPaso, Mirant, etc. plants in India).
India never expected to and was never expected to pay for its energy and telecom upgrade. India didnft actually gpayh Tyco for Indiafs fiber-optic network and the White House gave Gary Winnickfs Global Crossing to Singapore and then announced gAmerica was tenth in the world behind other developing nations in broadband.h Go figure.
Forget the Nigerian oil-barges folks. This is industrial-treason masquerading as the glargest single foreign-investmenth in Indiafs energy infrastructure.. ever. Bought and paid for by artificially inflating and then intentionally debasing the securities markets. The foreign-nation upgrades (a thousand points of fiber-optic light) between 1995 and June 2001 cost the public approximately 401,000 (often referred to as the 401K).
It is worth remembering gthe anthrax is in the mailh.
Also on the 19th of September Waksal told ImClone investors gWe do not have any worries about the FDAh.
gWe (as in Martha and Harlan and I) donft have any worries.. but you do.h
By the way: Wouldnft the banning of cloning make it a little hard on a company named ImClone?
Note for future reference: When you hear the word gImCloneh think gEnronh and when you hear the word gEnronh think gJohn Mendelsohnh and think gChairman of the gVisitorfs Board of M.D. Anderson Cancer Centerh and when you hear the words gChairman of the Visitorfs Board of M.D. Anderson Cancer Centerh think gBush41. This is called a tightly knit club of Houstonfs geliteh.
On the 20th Bush invited Hamza Yusuf to the White House to ask him about his gpoints of viewh then Bush met with Porter Goss minutes before his speech to the nation.
The same day Kenneth Lay hosted Elizabeth Dolefs Senate seat fund raiser in Houston.
On the 21st an oral report was made to Kenneth Lay on Vinson & Elkinsf gfindingsh (this would be the gattorney firingh Gonzales, Novation, Tenet, GPO, Medicare, Safe Harbor.. Vinson & Elkins).
This is gVinson & Elkinsh as in gAG Gonzalesh as in gProject Condorh as in gProject Valhallah and gProject Tammyh and gDeloitte & Toucheh and gDeutsche Bankh.
Quick question: Where was the gtax-evasion producth for Enronfs fiscal 2002 business-year?
Answer: Didnft need one.
Enronfs Dabhol natural-gas (as in Trans-Caspian pipeline; it has to get its gas somehow) energy plant in what was called gBombayh in 1993 was online and producing electricity in June of 2001.
Come-on.. an goral reporth from Vinson & Elkins?
As if Lay needed an oral report on how he had been cooking the balance sheets since 1993 and avoiding federal taxes since 1996?
The day after Kenneth Lay got his goral-reporth nine people are incorrectly diagnosed (but whomever sent the thrax knows the diagnosis).
On the 26th of September Lay urged his employees to buy Enron stock which was a little too late for Skilling.
gWe have stopped cooking our books for the first time since 1993.. this is a good time to buy Enron stock.h
On the 1st of October Blanco was hospitalized.
On the 2nd Stevens was admitted.
On the 3rd Enron Chairman Ken Lay and FERC chairman Pat Wood sat at an energy policy conference gspeakerfs tableh in Virginia.. and Cheney met with India External Affairs Minister Jaswant Sing regarding Dabhol gtalking pointsh.
On the 4th Stevens was gpubliclyh confirmed to have anthrax (but the public doesnft know it yet).
On the 5th Stevens dies.
Starting the next day two more letters were mailed and Enronfs President, Greg Whalley calls Treasury Undersecretary Peter Fisher gsix or eighth times to ask the government to urge bankers to extend credit to the struggling company.
Obviously the eighth call worked.
Note: The day after 9-11 the Wall Street Journal asked Enron Corp President Whalley about gwhat lies aheadh and Whalley responded: gThe freak-out factor is goneh and gCalm has returnedh
9-11 had a gcalmingh effect on the President of Enron?
The 7th of October is day 1 Afghanistan bombings.
On the 8th Ridge was sworn.
On the 10th, Vice Presidential aide and former executive director of Cheneyfs white-collar crime.. errr.. make that.. Cheneyfs closed-door energy task force, Andrew Lundquist (note: the task force officially disbanded gat the end of Septemberh) and WH economic advisor Robert McNally met with Enron representatives Gerstandt, Vicens, and Hardy.
The next day Todd Graves was sworn in (Tenet, GPO, Novation, Lipari) and Assistant USA Tom Wales is murdered in the basement office of his home.
Here come the gattorney firingsh right on time.
There is bit of white-collar crime around here somewhere (donft confuse gun-control with white-collar crime).
On the 15th NBC turned over its letter.
And the gdog and ponyh begins.
On the 15th Donald Evans hooked up Sig Rogich with Kenneth Lay and the Vinson & Elkins report is submitted to Lay (again.. they are pretending India was ever expected to pay its energy bills). Pure Shakespeare.
On the 15th of October Daschlefs letter was opened.
The next day Enron reports a gbig third quarter lossh of $618 million and reduces shareholder equity the following day by $1.5 billion to account for transactions involving limited partnerships.
Of course there is a 3rd quarter loss. That is the quarter you stopped cooking your books.
This is Securities market debasement 101.
This is also the day that Rebecca Smith and John R. Emshwiller claim to be the gstart of Enronfs problemsh in their book g24 daysh published by Harper Collins.
First off.. the start of your problems do not begin when you stop cooking your books.
The start of your problems begins when you start cooking your books because the questions that should be answered are gWhyh and gWhy then?h
If the gstarth of your problems is on the 16th of Oct then why would the SEC and CFTC documents destroyed in the WTC matter to Enronfs outside shareholders?
What is noteworthy about Q3 2001 is what happened the month before and the month after day 1 of Q3 (July 01, 2001) but that will come later in #7 of the series.
Coincidence or not.. at this point in time anthrax is now covering up Enronfs stock market debasement.
This loss report is the first time Enron had been honest about a quarterly balance sheet in almost 7 years.
The question to ask is not: gWhy did you cook your books?
The question is: gWhy did you stop cooking your books?h
The next question should be: gWhy did you stop cooking your books on day one of Q3?h
The possible answer offered might be: gBecause Sherron Watkins blew a whistle.h
Not.
She was a phony whistleblower set up by Toffler from Harvard.
By the way.. day one of Q3 is about as far back as SOX (now referred to as gSARBOXh) is required to investigate.
On the 17th it is reported that gEnron shareholders stand to make millions from Enron partnerships.h and 31 capital workers test positive for the presence of anthrax and the House of Representatives adjourns.
The following day David Iglesias (New Mexico) is sworn in.
So the attorney firings was all about partisan politics?
Yes, if gpartisan politicsh is spelled E-N-R-O-N or W-M-D.
Keywords again here are: GE, Tenet, Novation, Lipari, pulse-oximetry, Reagansfs 1986 safe-harbor, Medicare fraud, kickbacks, GPOs.
At this point in time the CIA is briefing Cheney on Niger uranium.
On the 19th the New York Post letter is found.
Here begins the theater.
On the 19th Ridge briefs the media on gpotential anthrax threatsh and Enron freezes its assets in its 401K employee retirement plan and bars employees from selling company stock trading at $32.20 per share.
Remember September 17 when Skilling bought his at $31.00?
Enron employee stock is unfrozen on November 19th with shares at $11.69.
Now (this is sarcasm) do you finally see the effect 9-11 had on Enron stock?
This is exhibit gAh on how natural-gas power-plants in India get paid for and donft assume this nation building reality goes over the head of Indiafs Prime Minister.
GE pulled this same stunt with Indiafs first hydroelectric plant in 1902 and the crash of 1903 paid that invoice.
The same day Ridge gbriefs the mediah on anthrax, and Enron freezes its assets in its 401K employee (not executives) retirement plan.. Wendy Grammfs husband Phil Gramm has an article published in the WSJ entitled gEcon 101: Poor Folks Canft Give You A Jobh (Remember Wendy? She sat on Enronfs board and was an architect of Enronfs Commodity Futures Trading).
Poor folks have just discovered two things they canft do.
1. give you a job.. and
2. sell their assets in the Enron 401Ks
Class warfare ironies:
1. Enronfs grichh never actually had the money anyway.
2. If you canft count - how do you know you are rich?
On the 21st of Oct Morris dies.
The next day Curseen dies and Ridge reports on their deaths at a WH press conference and Harvey Pitt announces he will make the SEC ga kinder (as in gRich Kinderh as in Kinder-Morgan) and gentler placeh for accountants.
If you are wondering if Arthur Anderson is around here somewhere - you are correct.
Do you think foreign nations (like India and in 2007 China/Westinghouse/Shaw Group) are learning a bit of a lesson here?
Why pay a company for building your energy plant if the company was cooking its books (and ghoodwinkingh the IRS) during the plantfs construction?
Iran is telling Russia that Iran isnft going to pay for Russiafs just completed Nuc plants while I am typing this sentence. As if Russia and Iran donft know how the game is played?
And guess what.. the same day Pitt makes his gkinder-gentlerh announcement, Arthur Anderson learns that the SEC gis inquiring into the accounting of Enron Corp., and Enron discloses that the SEC had gopened an inquiry into its limited partnershipsh .
Sort of bad news for Enron 401K shareholders (outsiders shining flashlights through envelopes) but in a little bit you will see things arenft so bad for 130 Enron executives.
The following day (23 Oct.) David B. Duncan of Anderson Accounting calls a meeting to organize the destruction of gEnron related recordsh.
Put on your gloves and masks - we are about to start shredding during an anthrax scare!
But werenft Enronfs records destroyed in Bldg 7?
Now let me get this straight: Everybody from the Pope to Clinton is trying to get India to pay its Enron bills and AA is shredding records?
DUH!
On the 24th Enron replaces Fastow and John McKay (Western Washington) is sworn in as a USA under a presidential nomination and senate confirmation.
I guess anthrax wasnft holding the Senate back.
Google gJohn McKayh and Medicare, Novation, you are getting the idea.
On the 25th Enron tapped $3 billion from bank lines to ensure liquidity and all eyes are glued as Governor Ridge gives an update on the scientific analysis of the anthrax samples.
So basically Greenspan and Bush didnft gdo anything for Layh but obviously the banks did. But the $3 billion doesnft help the locked-out employees much because nobody cheers up Enronfs gpoorh frozen asset holders with the good news.
This is called gnot doing anything for Enronh.
Ridge emphasized that the anthrax samples are from the same Ames strain.
The next day President Bush signs the gPatriots Donft Know Anything About Enron Acth and Mr. Lay calls Mr. Greenspan.
The Fed doesnft disclose the details of the call but it does say gMr. Greenspan did nothing in responseh.
On the 28th Lay speaks to OfNeil who adds his name to the list of people who do not intervene.
Here is Isaac Newtonfs tip on rule # 1 of how to intentionally and successfully debase the vehicle of monetary exchange (in this case the stock certificate).
Donft intervene.
Now on the 29th we are about to find out that the anthrax spores are ten times worse than we thought they were and by now you can probably imagine what other events occur during this announcement by the Major General John S. Parker.
On the 28th of October (the day Lay spoke to OfNeill) Moody lowers Enronfs rating.
The next day the bin Laden family ends its Carlyle Group grelationshiph and Commerce Secretary Donald Evans is greachedh by Kenneth Lay. Enron blocks employees younger than 50 years old from selling stock in their accounts from this day to November 12th. Enron claims that it is because of a change of administrators, but at the same time, 29 top executives cash out of more than $1 billion (remember the $3 billion credit line?)
A gchange of administratorsh during an SEC investigation?
Two days later, Kathy Nguyen dies and Major General John S. Parker testifies before the Senate Committee on Internal Security and Federal Service concerning the anthrax found in the Daschle letter and the SEC elevates the Enron inquiry to a formal investigation which is more tough news for the locked-out 49 year-old employees, but its only paper money anyway.. except for yesterdayfs 29 top executives (that was real money).
Those are 29 people (none over 50 years-old?) that are pretty happy gnobody helped Enronh.
November:
Peter G. Peterson joins ImClonefs board, Lay puts his Aspen houses on the market, the price of a 128-MB chip is $1.50 (A Boston investment bank later says that Enronfs gcollapseh triggered a price spike for DRAM. Enron had begun negotiating forward contracts with buyers and sellers as part of its planned entry into the DRAM market. Sources said that Enron told them that Enron had gsuggested or consummatedh financial swap contracts at $4 per 128-megabyte chip.)
Also in November, El Paso trader, Todd Gieger, begins fabricating 48 natural gas trades and sends fake volume and price information by email to gInside FERCfs gas market report.
This is called wire fraud and so soon after 9-11.. how patriotic is that?
Also this month, after receiving the gformal accident packageh the assurance manager at the FAA crushes the tape of the 9-11 controllers contained within the package.
On November 1st Enron secures another $1 billion in new credit lines, pledging its natural gas pipeline as collateral and President Bush signs EO 13233 which limits public access to papers of all presidents since 1980 including George W. Bush.
What was that about another billion for Enron?
Is it me or does it seem the bankfs intent is to create ga higher number of millionaires in America.. then ever beforeh?
Also on Nov 01 talking points are prepared for President Bushfs meeting with the India Prime Minister and Bush avoids discussing Enron during the meeting.
I would imagine Executive Order 13223 includes this meeting?
The next day Spencer Abraham called Lay to gcheck up on the companyh and neither mentions any assistance for the company.
$4 billion in bank loans isnft assistance?
Here is what the banks are really doing: They are acting like they are being duped and basically debasing their own wealth at the expense of their own shareholders.
The same day Margaret gMedicareh Chiara (Western Michigan) and Daniel h Medicareh Bogden (Nevada) are sworn in as USAs. Note: Medicare has intentionally allowed itself to be defrauded ever since Johnson signed the legislation in 1965 which is the reason the program exists.
On the 6th of November OPIC President Peter Watson contacts a top aide of the India Prime Minister saying: gThe acute lack of progress in this matter has forced Dabhol to rise to the highest levels of the United States Government.h
Yeah sure.. Shakespeare couldnft have made it more dramatic. Pete should get an Emmy.
And all this time I thought it was gNigerian oil bargesh?
The following day Governor Ridge, in a press briefing, dismisses bentonite as a binding agent for the anthrax in the Daschle letter saying the ingredient is silicon.
Remember what I was saying about Russia?
Well, as Ridge is dismissing bentonite, Russia began the next Enron leapfrog phase and clinches a deal to build a $2.5 billion nuclear power in Southern India, expanding its relationship which has seen New Delhi become one of Russiafs arms purchasers. Russian and Indian officials signed a memorandum on construction of the plant, at Kudunkulam in Indiafs southern state of Tamil Nadu.
Go figure. Russia canft afford its labor force either?
Indiafs poor payment history has risen to the ghighest levels of the United States Government.h and Russia thinks its going to get paid by India by 2007? Russia isnft too familiar with current American history, huh?
The day after Russiafs nuc plant agreement, Enron announces gimproper accounting and reduces its previously reported income going back to 1997 by $566 million.h This statement led to a chain reaction that led to Enronfs Dec 02 bankruptcy court filing seeking protection from its creditors.
Hey somebody call Russiafs energy bureau and tell them yesterdayfs Tamil Nadu plan may not be such a great deal after all?
Actually Enronfs last 2 quarters was.. proper accounting.
On the 8th, Rubin and Fischer join the gI didnft lift a finger for Enron clubh.
Darnit, those employees are still locked-out of their accounts too.
The same day Rubin and Fischer bail, President Bush gets an email tagged gImportance Highh:
gPresident Bush cannot talk about Dabhol.h
On the 13th of November 2001, President Bush signed the order establishing military tribunals and James Daniel Watkinsf (consultant to Arthur Anderson) body disappears.
It looks like Bushfs tribunals have already started.
Watkinfs body is found on December 01 .
Notice the so-called gliberal mediah didnft jump all over this one?
On the 14th of Nov., Kenneth Lay acknowledges that gEnron made billions of dollars of very bad investmentsh.
This is 5 days before Enron shares are unfrozen so this canft possibly help the value of those holdings very much.
Russiafs Rosatom will be making this same announcement regarding its Tamil Nadu and Iran Nuc plant projects sometime after Oct 23, 2007.
By the way you should all pick up a copy of the New York Times every day for two weeks starting on the above date.
http://www.legatus.org/public/index.asp
Note the gSpiritual pilgrimageh.
This is when the gexecutive compensationh takes its trip to Rome.
The checks clear on the 23rd.
The media debasement begins on the 24th.
Scan the NYT for comments made by a Texas stock analyst by the name of gDavid Ticeh regarding gimproper accountingh at a certain company (my guess: a telco and/or a gpopular private equity firmh).
Advice: Shift holdings from the sector with the negative press over to energy then bail from energy and move to healthcare for a while then get out of that before the new administration makes some kind of depressing Medicare change announcement.
Lets backtrack a second.
Remember Bushfs gImportance Highh email?
On September 09, the day after the email was sent, Mr. Lay called OfNeill again, supposedly warning of parallels between Enronfs impending collapse and the Long Term Capital Management failure.
Here we go again.
Ask yourself, why would 29 executives who just cashed out of $1 billion want Enronfs stock to go higher?
So, in yet another Shakespearean move, Kenneth Lay pretends to suggest that ga bailout may be in orderh.
OfNeill asks Mr. Fischer, the undersecretary, to analyze what an Enron collapse would mean for the markets.
Remember what I was saying about day 1 of Q3, 2001?
Lets take a look at the gunlikelyh events of Q2, 2001.
As of April 01 2001 (Day1, Q2) Jeff Skilling had served as CEO of Enron for about 1 month.
Arthur Andersonfs CEO, Joseph Berardino is into his second month as a member of the Legatus chapter near his home in Greenwich, Conn., and Berardino is also into his second month as head of Arthur Anderson Worldwide, SC (Arthur Andersonfs umbrella organization) and George Herbert Walker Bush is elected Chairman of the M.D. Anderson Cancer Centerfs Board of Visitors.
This is the Enron health-care connection and the reason I make references to the healthcare monopolistfs piggy-bank known as Medicare so often.
On Christmas Eve 2002, not a creature was stirring as the Wall Street Journal (while we were busy wrapping presents) printed the following article headlined:
gDouble Troubleh
gTies to Two Firms Tainted by Scandal Haunt Top Doctorh
gA Director at Enron, ImClone, John Mendelsohn Sparked Fireball at His Hospitalh
gDilemma for Houstonfs Eliteh
gHOUSTONh
gWhen news of the insider trading scandal at ImClone Systems Inc. broke in January, it stunned the elites of this city. One of their own, John Mendelsohn, president of the famed M.D. Anderson Cancer Center here, sat on the board of ImClone. Whatfs more, Dr. Mendelsohn was also on the board of another company in the midst of a notorious meltdown.h
gNot this! Not on top of Enron!h Charles Miller, chairman of the state body that governs M.D. Anderson recalls thinking. gNow John is in serious trouble.h
gDr. Mendolsohn may be the only person with official ties to two of the companies most widely associated with the financial crimes of the new millennium. That set off a scramble over Dr. Mendelsohnfs fate among Houstonfs leading power-players, including the chairman of Andersonfs advisory board, former President George Herbert Walker Bush.h
Christmas Eve.. in fact.. the whole week between Christmas and New Years Day is a publisherfs laundry period. As an investor, it is well worth onefs money to purchase the WSJ during this rare media exposure of financial laundry. Another popular laundry day is Valentinefs Day.
You may notice that the ginvestigativeh journalist from the WSJ, Kurt Eichenwald does not make any mention of Dr. Mendelsohn or M.D. Anderson in his New York Times Best Seller gConspiracy of Foolsh. Eichenwald also makes no reference to the Commodity Futures Trading Commission nor does he mention Frank Savagefs ethics policy suspensions or Toffler (the ethics advisor,) but he does mention the potential role of Arnold Schwarzenegger.
In Q1 and Q2 of 2001.. as Lay and Skilling are making electricity cheaper in Mumbai, India.. they are making electricity disappear.. in California .
The first week of April, Clinton makes his phony (give Enron its money or nobody will ever invest in your country again) trip to India and Richard Celeste ends his post as U.S. Ambassador to India. Celeste also served as a director of HealthSouth Corp.
If you think the Enron story is interesting so far.. wait until you hear the HealthSouth story.
So, in April, 2001, Jeff Skilling calls Richard Grubman of Highfield Capital an a__ hole because Grubman questions why the companyfs balance sheet wasnft available when the quarterly earnings were released.
Again: This is the last quarter that Arthur Anderson cooks Enronfs books.
Now here is a funny one. On the 23rd of April, Warren Buffett said he plans to invest over $10 billion in utilities if Congress repeals a 66 year-old law enacted to curb abuses in the energy industry.
Now what are the odds that Warren Buffett didnft know that the SEC had freed Enron from registering under this very same law (the Public Utility Holding Company Act; PUHCA) shortly after the first bombing of the WTC in 1993 which is also the same year Wendy Gramm and Sherron Watkins joined Enron and the also the same year Arthur Anderson took over Enronfs internal audit operation?
Common Warren.. give us a break.
Three days after Buffett pretends he doesnft get it, Kenneth Lay and President Bush attend that infamous literacy fund raiser hosted by former First Lady Barbara Bush.
Remember? Bush said it was the last time he spoke to Lay?
There was a reason for that. And that reason was because they realized that should be the last time they can be connected.
gliteracy?h
The MBA President and former Harken Energy executive, should have asked Kenneth: gWhen are you going to stop cooking your books? And did you hear global power producer AES just announced its first quarter profit has plunged by 60% and what is up with those rolling blackouts in California and did you hear about the whistle-blower over at Dynegyfs Project Alpha?h
Let me distract your attention for a second and mention that it is April 30th 2001 and Chandra Levy makes the last appearance at her Washington D.C. health club.
Its now May and J. Clifford Baxter quits the Enron energy firm.. but Watson doesnft blow a whistle to Lay for three more months?
Now here is a guy who didnft have any faith in the system.
For those political witch-hunters out there, here is a partisan bone for you to chew on.
It is late Q2 and Indiafs Dabhol plant is now gon-lineh and India stops paying its Enron bills one more time.. just before Karl Rove sells his Enron holdings in June.
Talk about timing.
What the heck did he know.. and what do the rest of the newly-minted Enron millionaires have planned for America in Q3 2001?
May 2nd 2001: President George Bush pretends like he had never heard of something called energy trading (even though the top 60 utility companies in the nation were doing it) and orders all federal agencies in California to cut power use in an effort to find a solution to the statefs energy crisis.
On May 9th, The Street.com posts one of the first articles publicly discussing Enronfs suspicious financial transactions
8 days later the terminator, Kenneth Lay and Michael Milken meet at the Peninsula Hotel in Los Angeles to formulate a phony scheme to make it seem like Gray Davis is the cause of Californiafs energy manipulation (as if Gray Davis doesnft know how the game works).
The following day, Saudi Arabia announces that it gpicked eight companies to participate in three projects that are expected to total $25 billion over several yearsh. Included are Exxon Mobil Corp., Royal Dutch Shell Group, BP, TotalFinaElf, and Enron Corp., the only non-oil company chosen.h Gotta get that gas to Indiafs power-plants somehow otherwise how are we going to transfer those Silicon Valley jobs to Mumbai?
Enron even fooled Saudi Arabia and Crown Prince Abdullah?
Get outta here.
Two days later a California poll finds that President Bush is faring far better then Gov. Davis amid the statefs power crisis. The same day, a Mumbai, India poll finds that Bush is faring far better then Gov. Davis amid Maharashtra statefs power surplus.
The next day on the 22nd of May, as if the California Attorney General Bill Lockyer doesnft know how the energy trading game is played, Lockyer blames Reliant and Enron and Lay, personally saying he would glove to escort Lay to a 8 x 10 cell that he could share with a tattooed dude who says gHi, my name is Spike, Honey.h
Electricity? gSpikeh get it?
Doesnft Lockyer know Enronfs gproblems donft starth until December?
At this point there are a lot of people that are onto Enronfs games but Sharron Watkins (the whistle-blower) hasnft even entered the picture yet.
It is now June.. and it is the last month Enron accountants cook their books so if you are thinking about selling your shares at a profit, this month would be the last opportunity.
June Highlights: Louis Freeh steps down.
To put things into perspective.. Freeh presided over the FBI during gThe Era of Greedh while Bristol Meyers Squibb was misstating years of earnings. Louis now sits on the Board of Bristol Meyers Squibb.
June: Cheney raises Enron concerns over payment of Dabhol energy in meetings in Washington with Indiafs Congress Party, Sonya Gandhi which now controls Maharashtra. Again, this is not only pure theatre but in a little while we find out that Gandhi is actually Italian (the Indians in the worldfs largest Democracy were totally taken by surprise by this one). Sonya had been giving some consideration to opening a chain of restaurants after she ends her stint in gpublic serviceh called gGandhifs Traditional Pizzah.
June: Karl Rove sells his shares of Enron (this is big money).
June: Kenneth Lay donates 25K to Governor Rick Perry (this is small money).
Note: In the bigger picture, campaign contributions are gsmall moneyh which is why the gliberalh media and politicians and so-called gwatch-dogh groups focus so much on campaign contributions. Following the small money makes it appear that somebody is actually following ANY money. As a rule, if there is gmuch fanfareh regarding financial transactions it is either a diversion or it is relatively insignificant.
Here are three examples:
John Kerry and Enron: The small money that was followed here was gdividendsh.
When Monika was getting started with Bill in December of 1995 (right around Arthur Andersonfs gProject Tanyah,) Heinz Kerry announced that Kenneth Lay will serve as a member of the Heinz Center philanthropy, then John Kerryfs Heinz family trust bought between $250,000 and $500,000 worth of Enronfs stock.
Do the math.
Enron is trading at $18.00 per share when they buy it and its trading at about $21.00 per share when they are greported toh sell it.
$500,000.00 would have bought about 28,000 shares. 28,000 multiplied by $21.00 is about $588,000.00.
Net Profit: $88,000.00.
So.. both the gliberalh and gconservativeh media report that the Heinz-Kerry ownership and sale of stock brought about $5,000 to $15,000 in gdividendsh.
The trivial amount diverted attention from the net profit.
Leave it to the money-counters to assume that the gain in gdividendsh is more significant than the gain in share value.
Example #2: Martha Stewart and ImClone: The small money that was followed here was the short term loss.
On the 28th of December 2001, the FDA decided not to approve Erbitux.
The day before the FDA decision.. Martha Stewart sold her 3,928 shares of ImClone stock.
The Wall Street Journal claimed that by selling gbefore the newsh Martha avoided a loss of $51,222.00
Did the math.. and this math sounds like Arthur Anderson is around here somewhere.
ImClone was trading at $75.00 per share ($294,600.00) when she sold. When the s__t hit the fan in June of 2002 the shares were trading at $7.00 to $8.00 per share ($31,423.00).
$294,600.00 minus (-) $31,423.00?
It appears Martha avoided a loss of a little bit more than $263,000.00 but then again nobody was actually counting money back then anyway.
I wonder what kind of ga lossh Peter G. Peterson, John Mendelsohn and George H.W. Bush from M.D. Anderson Cancer Center gavoidedh?
Insider trading is one thing.. but insider trading in fictitious money.. in a corrupt company.. run by a corrupt CEO.. is another.
October 23rd of 2010 is when Sam Waksal.. gets out of prison. (yikes.. here we go with that Legatus gpilgrimage to Romeh thing again).
Example #3: George H.W. Bush and Global Crossing: On the 16th of November 1999, when everyone was expecting the DOW to reach 36,000, George and Barbara decided to play it safe so they sell their 100,000 shares of Global Crossing for a reported $4.45 million.
These were the shares he got for free for a speech he vomited at in Japan.
Lets say Global Crossing is reported to have donated $30,000 (small money) in 1999 to the Bush campaign.
Here is the math the gliberal pressh canft seem to compute: What is $30,000 (small money) subtracted from $4.45 million (big money)?
Actually, even the published amount was wrong since Global Crossing was trading at $52.00 per share at the time of the sale.
Rush Limbaugh got the Terry gGlobal Crossingh McCullife part right but he never made any references to Barbara or George gGlobal Crossingh Bush?
Half of history and half of the facts have always been good enough for the King and his Court.
The big money is in corporate holdings in corrupt companies. Follow the big money.. not the small money.
Back to events in June just before Enron starts counting their money accurately in Q3:
Sami al Arian and some 130 other Muslims attend a White House meeting with President Bush.
In June of 2000, Sami al Arian was campaigning for George Bush in Florida (this would be during the war we supposedly didnft know was going on at the time).
Ifll be writing on a mishap in 1999 often referred to as the gU.S.S Cole bombingh to put this Muslim meeting and many other unlikely events in 1999 into clearer perspective.
Suffice it to say, at this point in time there should have been a U.S.S. Cole mindset among government leaders.
On the first of June the gPremium Processing Programh begins.
Foreign celebrities, athletes, executives, and other types of workers will be able to pay $1,000 to get work-visa applications processed within 15 days instead of the usual 3 months or more.
3 months?
Isnft that a business quarter?
Remember: The function of all government is to pretend to fail.
So wouldnft you know it.. the gvisa expressh program expedites the entry of both Abdulaziz Alomari and Salem Alhamzi.
Let me get this straight. The agencies responsible for keeping Americans safe from foreign terrorists were having such a difficult time gathering, assembling, and coordinating information from visa holders for approval within a waiting period of gthree months or moreh they decide to shorten the approval period to 15 days?
One would think that after seeing the August 6 2001 document: gBin Laden Determined To Attack Inside The United Statesh Condoleezza Rice would have suggesting suspending the new gPremium Processing Programh?
On the 18th of June, the FBI pulls agents investigating the bombing of the U.S.S. Cole out of Yemen due to a gspecific and credibleh threat against them.
Two days later, Yemen arrests 15 people suspected of plotting to bomb the U.S. Embassy in Sanna. Meanwhile, a reported recruitment videotape from Osama bin Ladenfs group claims responsibility for the Cole bombing and is viewed by the AP in Kuwait.
The next day the INS announces that it ghas no plans to actively target H-1B workers for deportationh. The INS spokeswoman says she gdoesnft know of any H-1B workers who have been deported simply because they have lost their jobs.h
The gmost recenth contact between Kenneth Lay and Dick Cheney occurs at a conference on the 24th of June.
To try to help Enron collect a $64 million.. huh?
I have re-read my own material and I have to pause here for a second..
.. pause
..
Enron paid no federal taxes between 1996 and 2001 except for the reported $64 million they are reported to have paid the year (2000).. this is weird. Just like Ashcroftfs curtain and Judge Moorefs ten-commandment production.. these folks emit symbolism (out of hubris) when-ever they get the chance. There is something weird about this $64 million figure but lets continue anyway..
Where were we.
The gmost recenth contact between Kenneth Lay and Dick Cheney occurs at a conference on the 24th of June.
To try to help Enron collect a $64 million (havin a hard time gettin over this) debt from Dabhol, on June 27th Cheney lobbies Indiafs opposition leader, Sonia Gandhi on behalf of Enron shortly after the Cheney energy task force specifically recommended promoting energy production in India.
The next day in an attempt to make it look like he doesnft understand the book-cooking energy business either, the Wall Street Journalfs Daniel Pearl, writes gAES Expresses Interest In Enronfs India Projecth c gAES offers to buyout troubled electricity venture. Dabhol hasnft produced power for more than a monthh.
Those bumbling fools at AES. Dabhol isnft paying Enron.. why would they pay AES?
As if India was ever expected to pay Enron?
The same day of Pearlfs piece, Bush names Elliot Abrams to the top national security post and the Supreme Court rules 5-4 that immigrants who commit crimes canft be held in prison indefinitely, if the U.S. canft deport them.
Huh? Its that damn ACLU I tell ya!
It seems like the gAh in ACLU might stand for.. gArabh?
Not that therefs anything wrong with that.
Remember the words: gracial profilingh.
..
Enronfs second business quarter is over.
July 01, 2001: This is the first day of the first quarter that Enron counts its money honestly.. since 1993.
Eventually every financial scam comes to a point where it needs to invoke its exit plan.
What is Enronfs exit plan?
July 01, 2001: California Senator Diane Feinstein who is on the Intelligence Committee warns CNN gIntelligence staff tell me that there is a major probability of a terrorist incident within the next three months.
Next three months?
Isnft that a business quarter?