- The Washington Times - Tuesday, February 12, 2002

A lawmaker yesterday offered new evidence to bolster their accusations that former Enron Chief Executive Jeffrey Skilling had detailed knowledge of the questionable off-book partnerships that caused the former energy giant's demise.
Rep. John D. Dingell, Michigan Democrat, released a document showing that Mr. Skilling attended the October 2000 annual meeting of a key partnership dubbed LJM that Enron used to pump up the company's reported earnings and hide its losses.
Mr. Skilling attended the Palm Beach, Fla., meeting as a "guest" to speak about Enron's commitment to the partnership, Mr. Dingell said. Mr. Skilling testified before the House Energy and Commerce Committee on Thursday that he had no detailed knowledge of LJM and other partnerships.
The document which appeared to be the talking points for the meeting showed that extensive details of the partnership were discussed, including the rationale and strategy behind LJM and the past performance of investments in the enterprise.
Bruce Hiler, Mr. Skilling's attorney, said his client made a speech at the Palm Beach meeting, left shortly afterward and was at the hotel for only about 45 minutes.
Mr. Skilling's own mother, in a Newsweek interview published yesterday, expressed skepticism that her son was clueless about the deals.
"When you are the CEO and you are on the board of directors, you are supposed to know what's going on with the rest of the company," said Betty Skilling.
Mrs. Skilling, 77, also questioned her son's contention that he left the company in August for personal reasons. "I don't think he knew he was in such high water, but I think he must have some idea because he resigned," she said.
Mr. Skilling's father, Tom, vouched for his son, however: "I've never known him to do a dishonest thing in his life."
The purpose of the LJM partnership, the document says, was to accelerate the recognition of earnings from certain Enron energy and communications investments.
For banks and investment houses that bought into the private deal, the document says, the return was projected at 69 percent and most of that was expected to pay out in less than a year.
One investment, Raptor III, was projected to have a 2,503 percent rate of return over a three-year period.
Among the limited partners in the "LJM2" transaction listed in the document were Chase Capital, GE Capital, J.P. Morgan Capital, Merrill Lynch, Morgan Stanley, Credit Suisse First Boston and First Union.
The document also listed as representatives of LJM a half-dozen Enron officials for whom the relationship posed conflicts of interest.
Enron's board of directors had waived the conflict rules for only one of those employees: former Chief Financial Officer Andrew S. Fastow. "LJM" drew its name from the initials of Mr. Fastow's wife and two daughters.
The other Enron employees listed as LJM representatives were Mr. Fastow's deputies, Michael Kopper, Kathy Lynn, Anne Yaeger and Joyce Tang. The document lists PricewaterhouseCoopers as LJM's consultant on accounting.


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