Report: Key figures in Enron case seek deal

SUMMARY:

Enron Corp.'s former treasurer and the chief auditor at the company's accounting firm are offering information about the energy trader's financial collapse to avoid possible criminal charges, according to a published report.

UPDATE:

Wednesday's Wall Street Journal, quoting unnamed lawyers familiar with the Enron investigation, reported that David Duncan, the former Arthur Andersen partner who was Enron's chief auditor, and former Enron Treasurer Ben Glisan are among potential witnesses being interviewed by Justice Department and other agencies' investigators.

There have been no agreements yet that would exempt the two from prosecution, and other witnesses also are being considered, the newspaper said. (Full story)

Senators heard Tuesday from three key figures in the collapse of Enron. Former Enron CEO Jeffrey Skilling faced sometimes heated questioning in a Senate Commerce Committee hearing on the bankrupt company's use of off-the-books partnerships.

• Summary   • Update   • Key questions   • Who's who   • Impact

A defiant Skilling denied that he had lied in earlier testimony before a House of Representatives subcommittee or that he had done anything wrong. Sherron Watkins, an Enron vice president and Skilling critic, and Enron President and Chief Operating Officer Jeffrey McMahon also appeared before the Senate panel Tuesday.

Enron allegedly used the partnerships to hide $1 billion in debt. The company's partnerships number about 3,000. (Full story)

KEY QUESTIONS:

WHO'S WHO

David Duncan: Former Arthur Andersen partner who was Enron's chief auditor.

Ben Glisan: Former Enron treasurer.

Kenneth L. Lay, Former Enron chairman and CEO. He served as Enron's CEO from 1985 until Skilling's election in early 2001 and was re-elected to the job by the Enron board after Skilling's resignation in August. Lay helped transform Enron from a regional natural gas pipeline company to a global energy behemoth.

Jeffrey Skilling, Former Enron president and CEO who resigned in August for what he said were personal reasons after more than a decade at the company.

Sherron Watkins, Enron vice president of corporate development who warned Lay about potentially serious accounting problems at the company in a letter.

Jeffrey McMahon, Enron chief financial officer

Andrew Fastow, Former Enron chief financial officer who was ousted in October.

IMPACT:

The Enron case already has led to increased investor skepticism about corporate financial reporting, and the Securities and Exchange Commission recently said it would seek new rules requiring greater disclosure of accounting practices by companies.

The case also prompted the Treasury Department to lead a review of federal regulations governing 401(k) retirement investment plans and other pension programs. Officials want to explore whether companies should have to notify investors when its finances decline significantly.