Washington, June 04: A former executive of the collapsed energy major Enron Corporation was arrested by intelligence sleuths and charged of fraud and conspiracy in fleecing the consumers during the California power crisis. John M. Forney, 41, was arrested yesterday by agents of Federal Bureau of Investigation at the Colombus, Ohio, office of American Electric Power Co.
He was charged in a criminal complaint of wire fraud and conspiracy during the California power crisis when customers were fleeced. He was released on a USD 500,000 bond.
Federal prosecutors in San Francisco allege that Forney was the architect of illegal manoeuvres including one known as "Forney's perpetual loop"--that Enron traders used to manipulate California's electricity prices.
Two other Enron traders, Timothy N. Belden and Jeffrey’s Richter, have pleaded guilty in connection with the alleged schemes.
Forney said through his lawyer that the criminal charges against him are "completely without merit." Bureau Report