The Enron Page

D. Ronald Daniel was Jeffrey Skilling's boss at McKinsey during the 1980s, when Skilling designed Enron's devious schemes. "Because of the work of Daniel and Skilling, McKinsey is now a defendant in the largest suit against Enron." (The Harvard Corporation, Daniel was a Trustee of the Naylor Dana Institute of the American Health Foundation between August 1975 and April 1981, while he was managing director of the New York Office of McKinsey & Co., Inc.

The Enron Directors

Board of Directors / Enron 1998
Board of Directors / Enron 2000

Several Enron directors are involved in the "health philanthropy" racket. Charles Le Maistre, president emeritus of the University of Texas MD Anderson Cancer Center, and a leader in the anti-smoking movement sicne the 1965 Surgeon General Report, was a director of Enron Corporation from 1985 to 2001, and was chairman of the Compensation Committee. His successor at MDA, John Mendelsohn, joined the board in 1999 and left in 2001. Director Robert A. Belfer, along with two other big investors, Lawrence A. Ruben and Jack Saltz (who happen to be Belfer's brothers-in-law), are also in the orbit of ACS/Lasker "health philanthropy." Belfer is Chairman of the Board of Overseers of the Albert Einstein College of Medicine of Yeshiva University, and his wife Rene is also on the Board; also, the tallest building on the YU Main Campus is named Belfer Hall. They have also supported major cancer research projects at MSKCC and at the Dana Farber Cancer Institute in Boston, and Belfer is on the boards of Weill Medical College at Cornell University and the Weizmann Institute of Science. Belfer sold 1 million shares on Enron stock for a profit of $51 million. Selma and Lawrence Ruben are big donors to Memorial Sloan-Kettering Cancer Center (as is The Arthur and Rochelle Belfer Foundation); and Anita and Jack Saltz have endowed chairs in diabetes research at Yeshiva and Mt. Sinai, and the Diabetes Research Center at Yeshiva. Belfer was the longest-serving director on the Enron board, from 1983 to 2001.

Belfer elected chairperson / Yeshiva Today 2000
Philanthropy / Memorial Sloan-Kettering Cancer Center

So the proles who lost their pensions will feel sorry for the poor Belfers: "In a disaster the size of the Enron collapse, it can be hard to pick the biggest loser - but a leading candidate has to be the Belfer family of New York City... And it has sent shock waves through a certain stratum of New York's power elite: the wealthy world of art collectors, , philanthropists and politicians. The family has long been prominent in this world - witness the Belfer gallery at the Metropolitan Museum of Art... The Belfer fortune was made by Arthur Belfer, who had been a feather dealer - as in the stuffing for feather beds - in the old country. At one time, Belfer, who died in 1993, made down-filled sleeping bags for the US military, but in the 1950s he branched out into foam rubber and then into oil. A foray into petroleum in Peru was a big success, and in 1962 the Belfer's company Belco Petroleum was listed on the New York Stock Exchange. Robert became president in 1965." The company was eventually bought by the firm later called Enron. (The third-generation curse, By Leslie Eaton and Geraldine Fabrikant. The New York Times 2001 Dec 8 - The Age).

Eaton & Fabrikant / The Age 2001

There is a Belfer Institute for Advanced Biomedical Studies at Yeshiva University at Yeshiva University, established by Arthur Bejer Belfer in 1978, with 350 postdoctoral investigators; the Arthur B. Belfer Professorship in Genetic Medicine at Cornell University; and the Belfer Audio Archive and Laboratory at Syracuse University.

Belfer Institute / Yeshiva University

Herbert S. "Pug" Winokur was on the Enron board from 1985 to 2001, and was chairman of the Finance Committee in 2000. He was a founder of the giant government contracting firm ICF, which produced the EPA report on passive smoking whose key chapters were written via illegal pass-through contracts to pre-chosen stooges. The Chairman of the Audit Committee was Robert K. Jaedicke, Professor Emeritus of Accounting at Stanford University Graduate School of Business and Dean from 1983 to 1990, which makes one wonder how anyone could pull a fast one without his tacit approval. Jaedicke was on the board from 1985 to 2001.

Pug Winokur Data Dump / Newsmaking
Harvard Watch /

"The more independent corporate boards are, the better they are at scrutinizing the companies they oversee. The kinds of things that compromise that independence are consulting contracts with the company, common bonds to charities and memberships on other boards doing big business with the company. Ten of Enron's 15 most recent independent directors, excluding Powers and Troubh, had such conflicts... Enron and its officers have given heavily to or promoted charities close to directors John Mendelsohn, Charles A. LeMaistre, Wendy Gramm and John H. Duncan... Winokur and Belfer have had outside business ties to Enron,..." (Enron debacle exposes board conflicts. By Mark Babineck, Associated Press. The Californian, North County Times 2002 Feb 17.)

Enron debacle exposes conflicts / North County Times 2002

The Bankers

Special Report - The Enron Papers, by Matthew Goldstein. ( Jan. 18 2002) puts to rest the lie that investors didn't know about Enron CFO Andrew Fastow's LJM partnerships' relationship to Enron. It was clearly described at the Annual Partnership Meeting in October 2000. "The papers contain a partial list of the biggest companies and financial institutions that are known to have invested in LJM2, either directly, through subsidiaries or on behalf of third parties: American International Group, AON, Citigroup, CIBC, Credit Suisse First Boston, Dresdner Bank, General Electric, JP Morgan Chase, Lehman Brothers, Morgan Stanley, Merrill Lynch, and Wachovia Bank. Smaller institutional investors were also involved, including pension funds and private equity funds...."

The Enron Papers / 2002

"To protect itself, Citigroup created securities that functioned like an insurance policy. If Enron stayed health, buyers of the securities would receive a steady return. But if Enron ran into trouble, Citigroup would stop paying the return, keep the investors' principal and instead give them Enron debt. Now those investors are left to fight for repayment in bankruptcy proceedings." An analyst wondered "whether Citigroup had simply been extra cautious or had special information at the time." (How Citigroup hedged bets against Enron. By Daniel Altman, The New York TImes 2002 Feb. 8.)

How Citigroup Hedged Bets / New York Times 2002

The New York Times, Feb 12, 2002, reported that "One reason the Raptors were so shaky may have been the fact that, according to the board report, they had already paid out more than $160 million to Mr. Fastow's LJM partnerships, whose investors included Merrill Lynch, JP Morgan Chase, Citigroup, the MacArthur Foundation and the Arkansas Teacher Retirement System." (Web of details did Enron in as warnings went unheeded. By Kurt Eichenwald and Diana B. Henriques. New York Times, Feb. 10, 2002.)

Web of Details / New York Times 2002

The Consolidated Complaint

"The University of California, the lead plaintiff in the Enron shareholders lawsuit, filed a consolidated complaint in the US District Court for the Southern District of Texas in Houston, adding nine financial institutions, two law firms and other new individual defendants to a list that already included 29 current and former Enron executives and the accounting firm of Arthur Andersen LLP." (University of California Office of the President press release, April 8, 2002. With links to the full complaint.)

Press Release Apr. 8, 2002 / University of California Office of the President
Enron class action / Milberg, Weiss, Bershad, Hynes & Lerach

The Coverup

"Levin chided Charles LeMaistre, who formerly headed Enron's compensation committee, for not being aggressive enough when he had concerns that Andrew Fastow, the firm's chief financial officer who was put in charge of two controversial partnerships known as LJM1 and LJM2, had profited handsomely from them. The board had waived conflict of interest regulations to permit Fastow to run the partnerships.

"After newspaper reports that Fastow had received at least $30 million from the partnerships, LeMaistre did not confront him and demand an explanation, Levin said. Instead, in a memo to Fastow drafted by an Enron lawyer, he said, 'We very much appreciate your willingness to visit with us.' 'You can't get much more deferential and obsequious than that,' Levin said. LeMaistre said he was angry when he learned how much Fastow earned on the partnerships." [Perhaps it was merely envy. Meanwhile, Winokur continues to maintain that they shouldn't be criticized because nobody told them -cast.] (Senate: Enron board should have known about risky partnerships. By William Neikirk, Chicago Tribune 2002 May 7.)

Senate: Enron board should have known... / Bay 2002

Hearing of the Senate Subcommittee on Oversight of Government, etc., "The Role of the Board of Directors in Enron's Collapse," May 7, 2002. Senators Joseph Lieberman (Chairman) and Carl Levin merely say tsk, tsk to the Enron directors, and accuse them only of not paying attention. In fact, as a longtime prominent anti-smoker since the 1964 Surgeon General report, director Charles A. LeMaistre has a long and rancid history of playing fast and loose with the truth in order to plunder smokers, which Senators Lieberman and Levin, as militant anti-smokers, have always enthusiastically endorsed. LeMaistre's confederates Belfer and Mendelsohn have similar "health charity" ties, and Winokur has financial ties to Harvard, but there was no inquiry into how much these institutions benefited. Ostensibly "independent" witness Robert H. Campbell is on the board of the Lasker-controlled Pew Charitable Trusts.

"The Role of the Board of Directors in Enron's Collapse" / Senate Committee on Governmental Affairs

Enron Oil and Gas

A parallel entity with partially overlapping directors, including Ken L. Harrison, Kenneth L. Lay, and Jeffrey K. Skilling, with Mark G. Papa from Belco, and Frank G. Wisner, the son of "a senior CIA official from 1947 until his suicide in 1965, who was involved in the overthrow of Arbenz of Guatemala (1954) and Mossadeq of Iran (1953). Wisner Junior was well-known in the CIA and he worked as Under Secretary of Defense for Policy and Under Secretary of State for International Security Affairs... A Wisner staffer told InterPress Services this year that 'if anybody asked the CIA to help promote US business in India, it was probably Frank.'

"When Wisner was US Ambassador to the Philippines (1991-92), Enron was in the midst of negotiations to manage the two Subic Bay power plants. When Wisner left Manila in July 1992, Enron won the deal and began to manage the plant in January 1993. During Wisner's tenure in India, he fought long and hard to secure various deals for Enron... Wisner left India earlier this year only after it seemed Enron's place was secure." (The Power Elite: Enron and Frank Wisner. By Vijay Prashad. People's Democracy 1997 Nov 16.)

Prashad - People's Democracy / American Patriot Friends Network

Wisner Junior's bio in the Enron Oil and Gas 1999 form DEF 14A: "Director since 1997. Mr. Wisner has served as Vice-Chairman of American International Group Inc. since 1997, following his retirement as U.S. Ambassador to India. American Internation Group Inc. is an insurance company, which provides risk insurance to companies investing in foreign operations. Mr. Wisner's more than 35-year career with the U.S. State Department, primarily in Africa, Asia, and Washington, D.C., included serving as U.S. Ambassador to the Philippines, Egypt and Zambia."

Enron Oil and Gas 1999 DEF 14A / US Securities and Exchange Commission

The OSS/CIA connections to American International Group (AIG) during World War II.

William J. Donovan

Enron: Ultimate Agent of the American Empire. Part I: Money to get power, power to protect money. - Motto of the Medici family. By Larry Chin. Online Journal 2002 Feb. 1.

Chin / Online Journal 2002

Enron Gave Taliban $Millions. The National Enquirer 2002 Mar 4.

National Enquirer 2002 / American Patriot Friends Network

Before Enron

From a post by Linda Minor to Catherine Austin Fitts, Dec. 18, 2001: "Before Enron, there was Houston Natural Gas. It had a building constructed at 1200 Travis in the late 1960s by Kenneth Schnitzer (The Houston Natural Gas Building) which was managed by 'Century-Gulf Realty Co.,' a joint venture between Century Partners - comprised of the Schnitzer brothers, the Weingartens and Harold Falik et al. - and Gulf Interstate, which was involved in an oil exploration partnership with John Loeb's sister, Margaret Kempner. Falik was president of the Imperial Sugar Co. in Sugar Land founded by the Kempners. (This is likely a Rothschild-connected group of Jewish tycoons from Galveston and Houston.) Gulf Interstate also included John Loeb's daughter, Ann Bronfman, the former wife of Edgar Bronfman, Sr. and mother of Jr. In 1968 United Gas (an energy company founded by James Baker's family) was acquired by Pennzoil and was divested to form Entex.... In 1976 Houston Natural Gas merged into Entex...."

Minor to Fitts, 2001 / CTRL listserv

Margaret Loeb Kempner was the mother of Thomas L. Kempner. And Raymond S. Troubh, the "corporate governance maven" sent to deal with the Enron mess, married Jean Loeb, the daughter of John L. Loeb Sr.'s brother, Henry Alfred Loeb.


cast 11-23-03