Enron Grand Jury Adds More Charges Against Ex CEO

The special Enron grand jury recently added a handful of charges against one of the seven men already accused in an indictment alleging fraud in Enron's Internet business.

Five new charges of money laundering and insider trading were added recently against defendant Joseph Hirko, a former co-Chief Executive Officer of the Enron Broadband Services division. The new charges relate to a time when he was an outside consultant, after he'd left Enron.

Though it has been customary for the Enron grand jury's indictments to be sealed, this second superseding indictment in the Enron broadband case was returned unsealed recently.

This was the second time Enron Task Force prosecutor Ben Campbell asked that the more than 200-count broadband indictment be superseded to add a few charges and make small alterations.

The other former broadband employees charged were: Kenneth Rice, another former Enron Broadband CEO; Kevin Hannon, former chief operating officer; Scott Yeager and Rex Shelby, former senior vice presidents; and Kevin Howard and Michael Krautz, former executives. All have pleaded not guilty to all charges.

Generally prosecutors allege that over a two-year period, executives with the division systematically lied to investors and the public about the value and capabilities of the business, including its deal with Blockbuster Video, and made millions on stock sales when the share price subsequently rose.

Attorneys involved say the trial could take as long as two months. Though the case is currently scheduled to begin trial in April 2004, U.S. District Judge Vanessa Gilmore told the lawyers she would consider a motion for continuance. It's unclear whether the case might be pushed back to later in 2004 or whether the lawyers will ask for and get a 2005 trial date.

Prosecutors are seeking to seize bank accounts, cars and other property from the former broadband executives. And the Securities and Exchange Commission has filed a companion civil case against the broadband executives, including many of the same accusations.

Knight Ridder Tribune Business News