The Trial of The Century: The Enron Trial

The final episode in The Enron Trial series is here. In part 5, Tom Fox and Loren Steffy take a look at Enron’s legacy, fifteen years after the trial. Why Should the Trial Be Remembered? “What the trial really brought home for everyone was the human toll that these kinds of corporate malfeasance cases can have,” explains Loren. When companies try to do whatever is necessary to keep their stock prices up at all costs, a lot of long-term harm comes out of it, “Enron wasn't only an accounting failure… above all else, it was a human failure.” Enron’s Innovations Looking back on Enron’s successes, you begin to wonder, ‘What if?’ Loren highlights how unfortunately it panned out for the corporation, stating that, “They really were out in front of a lot of these trends. Unfortunately they shot themselves in the foot with their accounting.” Fifteen Years Later - What Has Changed? There’s a lot that can be learned from the fall of Enron; corporate responsibility is viewed differently, now. It’s no longer only about…

Loren Steffy and Tom Fox have another conversation as The Enron Trial series nears the end. In episode 4, Loren Steffy recalls the aftermath of the guilty verdict. The Verdict and Counts of Conviction Jeffrey Skilling was convicted of 19 counts, his sentence totaling 185 years, and Kenneth Lay was looking at 120 years in prison. Skilling was actually sentenced to 17 years, which was then reduced to 12. Kenneth Lay passed away prior to his sentencing, and so, the verdict was vacated. The Prosecution and Defence “The defense team was stunned,” said Loren, “I think that the attorneys, as well as the defendants, believed that they were going to get a not guilty verdict.” The prosecution, on the other hand, felt a great sense of relief and accomplishment; this was an uphill battle from a prosecution standpoint in many ways. Jeffrey Skilling appeared stoic; though there were stories that indicated he disagreed with the verdict, he seemed to have accepted his fate. The Jurors and The Judge Loren commends the…

Loren Steffy and Tom Fox sit down for part 3 of The Enron Trial series. In this episode, they discuss some of the significant testimonies by witnesses, and the effect they had on the trial. The Star Witnesses Loren names Andrew Fastow, former CFO, and Ben Glisan, former Treasurer, as the star witnesses in the trial. However, the most moving testimony for him, as an observer, was that of Joanne Cortez, Enron’s bookkeeper. “She was a very credible witness,” said Loren, “and to me, it just showed how there were so many innocent people at Enron that didn't want to believe what was happening. And when they finally found it out, there was just no denying it.” Employee Losses The goal of the prosecutors was to emphasize the real-world consequences of Enron’s malfeasance. Many employees were encouraged to invest their entire retirement savings into the company, and ended up paying a significant price. Loren details the heartbreaking story of a pipeline worker by the name of Johnnie Nelson. “He didn't really know…

Loren Steffy and Tom Fox are back for another episode in The Enron Trial series. Here, Loren discusses the atmosphere in the courthouse, and what he observed over the course of the five-month-long trial. The Trial Begins “This was a criminal trial, but it was the trial of the century,” Loren believes; not only due to the company’s popularity, but because prosecution of executives was something that was not often seen. They are very difficult cases to prove, and Enron was no different. The Prosecutor’s Strategy The prosecutor avoided going into too much accounting detail, and instead kept the focus on the emotional aspect of the trial. “Enron was a great company to work for … People wanted to work there; they thought they were doing all these innovative things. Nobody wanted to lose their position in the company. They didn't wanna lose their jobs, and they wound up getting caught up in this,” Loren tells Tom. The Defence The defence had a really tough time. Loren recounts one moment where Kenneth Lay was on…

The five-part series on the Enron Trial kicks off with Tom Fox and actual trial attendee, Loren Steffy. This first episode highlights the major events that led up to the beginning of the trial, many years ago. Enron in the Early Years Enron was once the seventh biggest publicly traded company in America. When natural gas trading was deregulated, Enron made a name for themselves by creating a platform that allowed for easy trade of natural gas contracts. The Downfall of Enron As Enron grew, they attempted to expand their trading mentality to other markets. There was intense pressure to prove their successes due to being publicly traded, and eventually, they found a way to hide debt and fabricate numbers. However, in mid 2001, their stock began to fall and the questions flooded in. Enron’s lies quickly unraveled, leaving them bankrupt by early December - they went from being the seventh largest company in America, to being broke. The Arrest and Key Charges One of the stunning things about Enron, as a corporate…

Join Tom Fox and guest host, Loren Steffy, as they look back on the Enron Trial after 15 years. Loren was there and has a unique insight into the prosecution, defense, and all the players in this Trial of the Century.