Associated Press
11.03.2004

Jurors on Wednesday convicted four former Merrill Lynch & Co. executives and a former midlevel Enron Corp. finance executive of conspiracy and fraud for helping push through a sham deal to pad the energy company's earnings.

The deal involved a bogus sale of interest in power plants mounted on barges to the brokerage at the end of 1999 so the energy company could appear to have met earnings targets.

The jury acquitted a former in-house Enron accountant, Sheila Kahanek, who testified she consistently opposed a verbal promise that the government contended made the deal a loan - that Enron would resell or buy back Merrill's interest within six months.

Those convicted of conspiracy and two counts of wire fraud were: Daniel Bayly, Merrill's former head of investment banking; James A. Brown, former head of Merrill's asset lease and finance group; William Fuhs, a vice president who reported to Brown; Robert S. Furst, a former manager of Merrill's relationship with Enron; and Dan O. Boyle, a former Enron finance executive.

The verdict came after 21 hours of deliberations that began at the close of six weeks of testimony.

More Financial News