Proving Once Again That White Collar Crime Pays 

Bob Jensen at Trinity University

Why hold up a gas station for $150 when you can work a deal for stock options, cheat on the accounting to run up the price of the stock, exercise the options, and resign before the price plunges?  Particularly depressing to me are the stock sales of Robert Jaedicke.  He was once my major professor at Stanford University.  In the years preceding the collapse of Enron, he was head of Enron's Audit Committee and a member of the Board of Directors.  Don't stock options create moral hazards for members of audit committees?  I do not know that Dr. Jaedicke cheated anybody intentionally.  However, his stock sales proceeds have a tainted smell.  As for Lou Pai and the rest, I highly recommend that you read Pipe Dreams:  Greed, Ego, and the Death of Enron by Robert Bryce (PublicAffairs, 2002).



J. Clifford Baxter Vice-Chairman 619,898 $34,734,854
Robert Belfer Member of Board of Directors 2,065,137 $111,941,200
Norman Blake Member of Board of Directors 21,200 $1,705,328
Rick Buy Chief Risk Officer 140,234 $10,656,595
Rick Causey Chief Accounting Officer 208,940 $13,386,896
Ronnie Chan Member of Board of Directors 8,000 $337,200
James Derrick General Counsel 230,660 $12,563,928
John Duncan Member of Board of Directors 35,000 $2,009,700
Andy Fastow Chief Financial Officer 687,445 $33,675,004
Joe Foy Member of Board of Directors 38,160 $1,639,590
Mark Frevert Chief Executive Office, Enron Europe 986,898 $54,831,220
Wendy Gramm Member of Board of Directors 10,328 $278,892
Kevin Hannon President, Enron Broadband Services Unknown Unknown
Ken Harrison Member of Board of Directors 1,011,436 $75,416,636
Joe Hirko CEO, Enron Communications 473,837 $35,168,721
Stan Horton CEO, Enron Transportation 830,444 $47,371,361
Robert Jaedicke Member of Board of Directors 13,360 $841,438
Steve Kean Executive Vice President, Chief of Staff 64,932 $5,166,414
Mark Koenig Executive Vice President 129,153 $9,110,466
Ken Lay Chairman, Enron Corp. 4,002,259 $184,494.426
Charles LeMaistre Member of Board of Directors 17,344 $841,768
Rebecca Mark Chief Executive Officer, Azurix 1,895,631 $82,536,737
Michael McConnell Executive Vice President 32,960 $2,506,311
Jeff McMahon Treasurer 39,630 $2,739,226
Cindy Olson Executive Vice President 83,183 $6,505,870
Lou Pai CEO, Enron Energy Services 3,912,205 $270,276,065
Ken Rice CEO, Enron Broadband Services 1,234,009 $76,825,145
Jeffrey Skilling Chief Executive Officer, Enron Corp. 1,307,678 $70,687,199
Joe Sutton Vice-Chairman 688,996 $42,231,283
Greg Whalley Chief Operating Officer, Enron Corp. Unknown Unknown
TOTALS 20,788,957 $1,190,479,472
*All listed sales occurred between October 19, 1998 and November 27, 2001. The number shown under
gross proceeds indicates the number of shares times the price of Enron stock on the day the shares were
sold. It does not reflect any costs the Enron officials incurred in exercising the sale of the stock. Therefore,
the net proceeds to the listed individuals is likely less than the amount shown.

SOURCES: Mark Newby, et al. vs. Enron Corp., et al., Securities and Exchange Commission filings,
Congressional testimony, Enron Corp. press releases.

Question 1
Who owns 77,000 acres in Colorado and is the only person to own a 14,000 foot mountain?  I wish he'd take a flying leap from it!
Who at Enron refused to commute from Sugarland on the outskirts of Houston to catch flights on Enron's corporate jets departing out of Houston's International Airport?  Instead that former Enron executive required that a corporate jet be dispatched for him to commute from Sugarland.  Mostly the longer flights out of Houston for this executive were to his vacation home.

See Page 264 of Pipe Dreams by Robert Bryce cited above.

Question 2
Relative to the executive mentioned above, what woman was an even worse abuser of Enron's corporate jets?

See Page 262 of Pipe Dreams by Robert Bryce cited above.


Click here to return to Bob Jensen's main document on fraud --- http://www.trinity.edu/rjensen/fraud.htm