The dirty deals between nigerian banks and software vendors information technology managers of many of the nigerian banks and their collaborators smile to their various bank accounts each time they implement new banking software for their organisations. Former enron accountant sheila kahnek is acquitted former vice president dan boyle and four former merrill lynch bankers are convicted of conspiracy and fraud in the nigerian barge deal read. April 4, 2006 0 1 introduction: the nigerian barge deal enron corporation was an energy company based in texas and created when internorth acquired houston natural gas company in 1985. Former vice president dan boyle and four former merrill lynch bankers are convicted of conspiracy and fraud in the nigerian barge deal boyle is sentenced to 46 months in prison jan 7, 2005 -- the us supreme court agrees to consider overturning the conviction of the arthur andersen accounting firm for obstruction of justice in the shredding. Among the dozens of questionable deals connected to enron corp, nigerian barge, as it is known, has attracted intense scrutiny from congress, the press and pundits.
The first trial of former enron executives concerned six people accused in a nigerian barge deal from 1999 a prosecutors said conspiracy, fraud and lying under oath at enron and merrill lynch, a. An in-house merrill lynch & co lawyer didn't support the brokerage's harried $7 million investment in enron corp-owned barges at the end of 1999, she testified tuesday. A former enron employee testified that the energy company offered merrill lynch a guaranteed profit to persuade the brokerage firm to buy an interest in nigerian barges after enron couldn't find.
The trial stemmed from enron's 1999 sale to merrill of a $7 million stake in three energy-generating barges moored off the nigerian coast the united states said the deal was a disguised loan. Former vice president dan boyle and four former merrill lynch bankers are convicted of conspiracy and fraud in the nigerian barge deal 2005 january 7, 2005. Judgment day for enron there was the nigerian barge deal enron owned three nigerian power barges, basically floating power plants like the nigerian barge deal, if he was guaranteed a. The us justice department is investigating a december 1999 transaction in which enron sold a part-interest in electricity-generating barges in nigeria to a special-purpose entity established by. The enron task force and the nigerian barges deal prosecution in the wake of the december 2001 collapse of enron corporation, the federal government created the enron task force (etf), a joint effort of the department of justice.
One such instance he described was the nigerian barge deal, in which enron sold the barges to merrill lynch, then bought them back six months later at a 15 percent. Nigerian barges: in december 1999, enron and a financial institution entered into a sham sale transaction that enabled enron to book approximately $12 million in earnings in 1999 in the transaction, the financial institution agreed to buy from enron an interest in certain power-producing barges in nigeria based on an express oral promise. Former merrill lynch executives indicted in enron fraud probe sale of the three nigerian barges prosecutors charge enron then used the loan to inflate its financial statements and deceive. They are accused of helping push through a sale of several electricity- producing nigerian barges to the brokerage firm in late december 1999 that allowed enron to book about $12 million in pretax earnings.
Midlevel executive dan boyle is charged with plotting to make enron's books look better than they were in the nigerian barge deal june 5 - a san francisco grand jury indicts former enron trader john m forney, accusing him of manipulating california's electricity markets from 1999 to 2001. In one deal, in which merrill acquired an interest in a nigerian barge operation that allowed enron to book a last-minute $12 million profit for 1999, a senior merrill executive worried that the firm might aid/abet the manipulation of enron's income statement, documents obtained by the senate permanent subcommittee on investigations show. In 2000, enron arranged to take merrill lynch out of the barge deal on the agreed time frame at the agreed rate of return in the second transaction, also closed in the last days of december 1999, merrill lynch and enron entered into two energy options — one physical and one financial — that merrill lynch knew had the purpose and effect of.
Three former senior merrill lynch bankers were yesterday charged with criminal conspiracy stemming from a 1999 deal with bankrupt energy firm enron the news was announced by assistant attorney. The nigerian barge transaction was a deal which was initiated by ml i s bankers in texas brown also complained enron owns nigerian barge co has oil barges they. Merrill execs convicted in nigerian barge case released by catherine prosecutors alleged that a 1999 deal in which enron sold merrill a stake in the barges was a sham contrived to allow the. Now the securities and exchange commission and congressional investigators probing the enron matter are examining the nigerian barge deal to see if it was done simply to temporarily, and artificially, bulk up enron's earnings, ultimately helping to conceal the houston energy company's changing financial picture from investors.
The government will retry three former merrill lynch executives whose 2004 fraud and conspiracy convictions in the so-called nigerian barge trial were overturned by the fifth circuit here's the. The case was us v james a brown, known among enron junkies as the nigerian barge case because it involved enron's allegedly phony sale of a power-generating barge to merrill lynch in 1999 to. But enron secretly promised to buy out merrill's interest at a premium within six months, and the three defendants agreed to buy the nigerian barges only because the firm knew the 'purchase' was.
Enron prosecutors put quite a few behind bars in the wake of the company's spectacular meltdownbut time, courts, and events unforeseen have eroded some of what the enron task force accomplished. • government exhibit 412: the final enron transaction approval sheet for the nigerian barge deal it doesn't mention the oral side deal and is signed by 11 people at enron. Merrill lynch's purchase of the nigerian barges allowed enron to improperly record $12 million in earnings and $28 million in funds flow in the fourth quarter of 1999 the indictment alleges.