LOS ANGELES, Dec. 4 (UPI) -- Former Enron executive John Forney was indicted Thursday on 11 federal counts of conspiracy and wire fraud involving California's 1999-2001 energy crisis.
The Justice Department said the indictment alleges Forney submitted or caused to be submitted false and fraudulent information to California officials to manipulate the price of electricity during the energy crisis.
Forney was the manager of Enron's West Power Trading Division, which was responsible for all of Enron's energy trading in California.
Forney, from Upper Arlington, Ohio, was first charged in a criminal complaint in June and was later indicted on one count of conspiracy. Thursday's indictment adds 10 counts of wire fraud based on transfers of money to and from Enron as a result of illegal trading.
The indictment specifically alleges Enron and Forney were involved in seven separate trading schemes to manipulate the California energy market during the height of the crisis. In one scheme, known as Death Star, Enron allegedly submitted false schedules to make it appear the company was relieving congestion on energy lines.
Federal officials said the scheme, which Forney allegedly created, was also known within the company as the Forney Loop.
