An Enron innocent: She fought fraud charges and won!
Sixteen former Enron employees have pleaded guilty to defrauding investors. Another one went to trial and was convicted. Enron CEOs Jeff Skilling and Ken Lay are currently confronting witnesses as they fight charges that could put them each away for decades. Five more Enron officials are slated to be retried later this year.
That's what makes Sheila Kahanek, 40, so remarkable. Kahanek, a CPA who worked in the international and broadband divisions from 1998 through September 2001, is the only former Enron employee who has fought charges of fraud in the courtroom and won. She was fully acquitted last year of charges she helped coordinate a deal in which Enron fraudulently "leased" Nigerian barges to Merrill Lynch in an effort to artificially inflate its profits. Three Merrill executives and one Enron employee tried with her were convicted.
Reached by phone, Kahanek had plenty to say about life after Enron, the Lay and Skilling trial, and her winning defense strategy.
Are you following the Lay and Skilling trial?
I'm following the trial very closely, but not for the reasons you might think. I spend most of my time comparing and contrasting my experience with the Lay and Skilling trial. The main thing I find myself focusing on is that the presumption of innocence is not there, and that is identical to what I experienced. There was prosecutorial gatekeeping of witnesses.
What do you think ought to happen?
I think it is important, as an American, and as someone who has been through the federal justice system, not just for Lay and Skilling, that they get a fair trial. It is going to be very, very challenging for them. The government has a lot of odds in its favor. The negative publicity has been overwhelming, particularly the negativity in Houston. Most important, the prosecution has control over witnesses. That is one of the strongest things the prosecution has in its favor.
Do you think Lay and Skilling knew about the problems?
I don't know. I had seen Lay maybe one or two times. I would like for the jury to make that decision based on all of the evidence. Witnesses should be able to provide testimony without fear of prosecution. Then the jury should be the ones to decide whether or not they are being truthful.
Do you regret going to work for Enron?
No, I don't. There were a great number of fantastically smart people. People want to focus on the tragic stories of people who lost so much. But people should also remember the good things at Enron. It was an intellectually stimulating environment, and motivating, without a doubt. I worked with a lot of great people and had a lot of positive friendships there.
How have people been treating you?
People have really been great. People say, "Oh my gosh, Sheila, that could happen to any of us, what happened to you" — mid-to-low-level professionals being prosecuted, having to go through what I went through. People realize that what happened to me could happen to anyone in corporate America. The day of the acquittal I found out how many voice mails my answering machine could hold. I haven't wanted for opportunity. A lot of people respected my courage to fight in the face of such insurmountable odds.
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