Former Enron executive settles SEC fraud charges

WASHINGTON , D.C. A former assistant treasurer of Enron Corp. has agreed to pay $300,000 to settle civil fraud charges related to the company's collapse, the U.S. Securities and Exchange Commission said.

Timothy DeSpain, who served as assistant treasurer at the energy conglomerate between January 1999 and May 2002, pleaded guilty last October to related federal criminal conspiracy charges.

According to the SEC complaint and DeSpain's agreement with federal prosecutors, he admitted to conspiring with other Enron executives, including former treasurers Ben Glisan and Jeff McMahon, to manipulate the company's credit rating.

During the period DeSpain served as assistant treasurer, Enron failed to disclose $5 billion in financial obligations, the SEC statement said.

Glisan was sentenced to five years in prison last September for conspiracy related to crimes at Enron.

In addition to the fine against DeSpain, which will be waived based on his inability to pay, he will be permanently barred from acting as an officer or director of a public company, the SEC said.

DeSpain's attorney did not immediately return a call seeking comment on the settlement.

Earlier, the SEC said another former Enron executive, Raymond Bowen, had agreed to pay $500,000 to settle charges of earnings manipulation.

Former Enron Chairman Kenneth Lay, former Chief Executive Jeffrey Skilling and former Chief Accounting Officer Richard Causey face dozens of charges of fraud and conspiracy.

Reuters