25. The news reporting on the Baxter suicide at times appeared to suggest that he might have been a victim of foul play in an effort to silence him. Such innuendo was picked up on numerous Internet sites, and became part of the mythology of Enron that has been widely accepted as fact. But the episode serves solely to underscore how easily falsehoods enter into the public consciousness. Every detail related in this book was available in the voluminous records, made public shortly after the investigation concluded but apparently only skimmed by most who obtained them. The fact that Head saw Baxter alone, driving his car, minutes before his death is revealed in the file for case 02-000599 with the Sugar Land Police Department. That case file contains scores of individual documents running close to a thousand pages—from witness reports to descriptions of police actions to crime-scene photographs and autopsies—that leave no doubt that Baxter was a suicide. The pain inflicted on the Baxter family from the swirling cloud of rumor following his death marks one of the despicable consequences of a society all too willing to believe conspiracy theories over documentation, and a media that fails to review complex yet solid records to inform the public of the truth.
EPILOGUE
1. The Powers Report was formally released on Feb. 2, 2002; despite the criticisms leveled at Powers in the run-up to the document’s public disclosure, it stands as one of the most masterful, hardhitting reports to ever be issued from an internal corporate investigation. As a testament to its success, the voluminous other reports that have been issued—from bankruptcy examiners, congressional committees, and the like—have never achieved the clarity and ultimate simplicity of the Powers report, and have not added significant new details that brought a different understanding to the reasons behind the Enron bankruptcy.
2. Details of the appearances and statements before the House Energy and Commerce Committee’s Subcommittee on Oversight and Investigations from the transcripts to the hearing titled “The Findings of Enron’s Special Investigative Committee with Respect to Certain Transactions Between Enron and Certain of Its Current and Former Officers and Employees,” Feb. 5, 2002; “Financial Collapse of Enron,” Feb. 7, 2002; and “Financial Collapse of Enron Corp.,” Feb. 14, 2002.
3. A detailed rendition of the events surrounding Andersen’s efforts to forestall indictment—and the government’s decision to charge the firm—from Eichenwald, “Andersen Misread the Depths of the Government’s Anger.” Also see Eichenwald, “Miscues, Missteps, and the Fall of Andersen”; and Duncan’s 302 from his FBI interview, conducted by Weissmann, on April 5–6, 2002.
4. The fall of Harvey Pitt was chronicled by Labaton, “Praise to Scorn.”
5. The criminal complaint against the bankers—Bermingham, Darby, and Mulgrew—was filed on June 27, 2002, in Federal District Court in Houston. The affidavit in support of the complaint by Special Agent Simpson laid out the details signaling to Kopper that he faced a high probability of indictment. The three bankers were subsequently indicted in Houston on Sept. 12, 2002, and as of this writing are facing extradition from England to stand trial.
6. Kopper’s guilty plea was witnessed by the author. Some of his statements to prosecutors are detailed in the criminal charges against him along with his cooperation agreement, filed on Aug. 20, 2002, in Federal District Court in Houston. Other details of his statements from the affidavit of Special Agent Omer Meisel, filed on Oct. 2, 2002, in support of the criminal complaint against Fastow.
7. The author witnessed Fastow’s surrender and guilty plea. The criminal information against Larry Lawyer was filed in Federal District Court in Houston on Nov. 26, 2002. The first wide-scale broadband indictment—brought against Enron executives Ken Rice, Joe Hirko, Kevin Hannon, Kevin Howard, Scott Yeager, Rex Shelby, and Michael Krautz—was filed in the Houston court on April 29, 2003.
8. The superseding indictment in U.S. v. Fastow was filed in the Houston court on April 30, 2003. Glisan’s plea agreement and admission of guilt to count five of his original indictment were filed in the court on Sept. 10, 2003. The indictment of Lea Fastow was filed on April 30, 2003, and she ultimately entered into a plea agreement with the government, which was filed on Jan. 14, 2004.
9. The author witnessed Andy Fastow’s change of plea, and details of the hearing come from personal observation. Dialogue comes from a transcript of the proceeding on Jan. 14, 2004.
10. The superseding indictment, naming Skilling and Causey as defendants, was filed under seal in the Houston court on Feb. 18, 2004. Some details of Skilling’s encounter with Glisan from Mary Flood, “Skilling Colleague Passed by on Chain Gang,” Houston Chronicle, Feb. 21, 2004, Business, 1. The author witnessed Skilling’s arraignment, and details come from personal observation. Dialogue comes from a transcript of the proceeding on Feb. 19, 2004.
11. Details of Lay’s being escorted by the FBI agents into court, including the dialogue, from a videotape of the event shot by KPRC, Channel 2 news in Houston. Some details of Lay’s time in jail from Mary Flood, “Lay Describes Time in Cell, Reveals Hope for Future,” Houston Chronicle, July 10, 2004, 1.
12. Lay’s arraignment and his subsequent press conference were witnessed by the author, and the details come from personal observation. Dialogue from a transcript of the hearing of July 8, 2004. The press conference dialogue is from a videotape by KPRC in Houston and transcript of the event.
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