Ex-Enron Accountant Admits To Manipulating Reserves

Law360, New York (February 27, 2006, 12:00 AM EST) -- The former chief accountant for Enron Corp.’s trading division admitted at Monday’s trial to using Enron’s reserve accounts to boost the company’s reported earnings.

Wesley H. Colwell testified that upon learning former Chief Executive Jeffrey Skilling hoped to exceed financial analysts’ expectations, he reduced Enron’s reserves twice by $7 million in a five-day period between the close of the second quarter in 2000 and Enron’s earnings release. The $14 million sum was then transferred to reported income. As a result, Enron boasted a financially stable company,...
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