UNITED STATES DISTRTCT COURT
I .- - SOUTHQRN DIS'IXEI' OF TEXAS
HOWl'ON DMSION
I IINITBD STATES OF AMERICA 6
0
V. 8
KENNETHRICE, 0 Vx&icw 15 U.S.C. $9 78j(b) aad
JOSEPH HRKO, 8 17 C.F.R. 5 24O.lOb-5 (Securities
KEVIN HANNON, 0 u,s.c. QQ 1001 (False S-e);
KEVINHOWARD, 8 (wire Fraud); 371 (conapicrrcy); 2
SCOTTYEAGEIq § and Abehg); 1957 Qdoney Launde&;
REX SHELBY, and § 9X1 and 982 (Asset Forfeiture); 28
MIC~KRAUTZ 9 U.S.C. 5 2461 (Asset Forfeitcue).
JM7RODUCTIoN
1. At all times relevant to this Supemeding Indictment, Enron Carp. (%u04~~)
publicly-traded Oregon corporation with ita headqua&xs in Houston, Texas. Among other
businesses, Enton w engaged in the purch& and sate of natural gas, construction-and
ownership of pipelizw and potwr facilitie, provision of telewmmuni~tion service, and
in contracts to buy and sell trarious cummodities, Before it filed far bankruptcy on
2001,Enrclnw~theseventhlsrgestcorporationin~eU~~Sta~s.
2. Enron was a publicly traded camp~~y whose shares were listed on the New York
Stock Exchange. As a public company, Enron WHS rqti to comply with regulations
United States Securities and &c@mge Commiseion ("SEC"). Those regulations protect
members of the inv&ing public by, among other thhg~, tmswing that a company's 6nancial
information is accurately recorded and disclosed to the public.
FIPR-29-2003 19:23
SNIPPETS:
publicly-traded Oregon corporation with ita headqua&xs in Houston,
in contracts to buy and sell trarious cummodities, Before it filed far bankruptcy on December
Enron was a publicly traded camp~~y whose shares were listed on the New York
United States Securities and &c@mge Commiseion.
July 1,1997, Enron acquked a pubtic utility, Portland General Corporatiq based in Potid,
Fiitpoillt to Emon CommwicE ticma, Inc, and expded the bwhe88.
refierred to herein as `BBS"), At all tima relevant to this Indictment, EBS was a whollydwned
The Defendants
RICE shared CEO responsibilities with JOSEPH HJRKO &om
President and CEO of EBS from approximately July 1,.
misleading statementa and omit&d material information from stat8ments made,
revenue and business perfonmtace of EBS.
EJBS's poor business performance.
During this same time period, defadanta RICE, HIRKO,
SHELBY ht, among 0tht3r things, the Enron network was not intelligent and &ron'a press
business aad a ruqjor part of&r&s overall b&as strategy.
Operating System," or "BOS."
RICB, IHANNON, HOWARD, YEAGER and other& were tiormed that EES - which &ad f&d
the fourth quarter of 2000, as &f=danta HANNON, HOWARD and others kned that El%
joint venture, which WBS caMI EBS Content Systems LLC.
Braveheart transaction on its publicly filed SEC form IO-K fir 2000 and SEC firm 10-Q for the
District of Texas and ehewheare, the def'imlants KENNETH RICE, JOSEPH HIRKO, KEVlN
(Title 18, United States Code, Sections 1343,Z and 355 1 et seq.)
would and did operate as a fIaud and deceit upon members of the inv&ing public,
in violation of Title 15, United States Code, Section 78jand 78ff.
interstate commerce, in violation of Rule lob-S of the Rule and Regulations of the United
ia violation of Rule lob-5 of the mles and Regulstins of the United States
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