Mark Koenig, the former head of Enron‘s investor relations section, agreed to a plea bargain today with the Enron Task Force in regard to newly-filed criminal charges against him, and agreed with the Securities and Exchange Commission to pay civil penalties of $1.49 million to settle related civil fraud charges against him.
Mr. Koenig worked for Enron from 1985 through 2002. He is charged with participating in a scheme to mislead investors about the financial affairs of a couple of Enron units for the purpose of making those units appear to be more valuable than they really were so that their alleged true, lower worth would not dilute the value of Enron stock. The incidents set forth in Koenig’s plea deal are also included in the indictment of Enron’s remaining “big three” unconvicted executives — Kenneth Lay, Jeffrey Skilling, and Richard Causey. Mr. Koenig appeared this morning before U.S. Magistrate Judge Frances Stacy and was released on bond.
Paula Rieker, who worked under Mr. Koenig, pled guilty earlier this year to an insider trading charge and is cooperating with the Enron Task Force.