Ex-Enron exec pays $31.5M to settle SEC charges

[Dover]

Source: AP

WASHINGTON — A former top executive of collapsed Enron Corp. is paying $31.5 million to settle charges that he used inside information to illegally profit from sales of thousands of shares of company stock in 2001, federal regulators said today.

The Securities and Exchange Commission said the deal with Lou L. Pai — who was chairman and chief executive of the fallen company's retail energy division Enron Energy Services — is one of the largest ever with an individual for alleged illegal insider trading.

The settlement includes a $1.5 million civil fine and $30 million in restitution plus interest. The SEC gave Pai credit for $6 million due him under his insurance policy as a company officer that he previously forfeited as a payment to Enron shareholders in a class-action lawsuit. He agreed to pay the remaining $25.5 million into a fund administered by the SEC for injured Enron shareholders.

Pai neither admitted nor denied wrongdoing in settling the civil suit filed by the SEC in federal court in Houston. He did agree, however, to refrain from future violations of the securities laws.

"More than seven years after the sale of his stock, Mr. Pai is pleased to conclude his negotiations with the SEC in a settlement that involves no admission of wrongdoing," his attorney Roger Zuckerman said in a statement...cont'd






Read more: http://www.chron.com/disp/story.mpl/front/5913422.html

[aquart]

1. How much does he have left?

If it's more than five cents, I'm not happy.

[Dover]

3. You mean how much is in the Swiss bank account?

Or how much interest this earned in the last several years?


Wouldn't it be great if ALL criminals had the option of paying a
penalty fee for their crimes without having to admit guilt or compensate their victims?

[DS1]

2. How many retirees died penniless while this court case was going on?

[happygoluckytoyou]

4. he did nothing wrong.... AND PROMISES NOT TO DO IT WRONG AGAIN IN THE FUTURE

[pimpbot]

5. I had to laugh when reading that

Sounds like something The Onion would write.

[elvisbear]

6. Pai netted over $200 million from sale of Enron stock.

I'm not an accountant but it looks like he made out pretty good. :mad:

200 - 31 = $169 million

http://money.cnn.com/magazines/fortune/fortune_archive/2006/04/17/8374281/index.htm

[bluesmail]

7. Anyone know what the SEC does with the fined money?