HOUSTON, Sept. 17 (UPI) -- A Houston Enron grand jury issued a second-sealed indictment that may charge several former Merrill Lynch employees, the Houston Chronicle reported.
The former Merrill Lynch employees were allegedly involved in a Nigerian barge deal prosecutors believe helped Enron fraudulently inflate its 1999 earnings. Three former Merrill Lynch employees could surrender as early as Wednesday.
In the barge deal, then-Enron Treasurer Jeff McMahon allegedly approached Merrill Lynch about creating an off-balance sheet partnership to operate electricity generators anchored off the coast of Nigeria, the Chronicle said.
Allegedly the Enron officials promised the company would repurchase the barges from Merrill Lynch at a profit within six months. Enron sold an interest in the barges to Merrill Lynch for $28 million, allowing Enron to tally a $12 million profit for 1999.
Prosecutors allege Andrew Fastow, then the chief financial officer of Enron, made the barge promises to Merrill Lynch. Fastow has denied all charges.
