John Forney, former manager of Enron Corp.’s online trading desk, pleaded guilty today to charges in California that he manipulated energy markets during California’s power crisis.
Mr. Forney, who is 42, is the third Enron executive to plead guilty to manipulating electricity prices from Enron’s now-defunct trading office in Portland, Ore. Former Enron executives Timothy N. Belden and Jeffrey S. Richter pled guilty last year and have been cooperating with the Justice Department in its continuing investigation into Enron.
As a part of the plea bargain, Mr. Forney is expected to cooperate with the ongoing investigation into Enron’s trading desk and how other energy firms may have played a role in manipulating energy markets. Four employees of Reliant Corp. have already been charged with deliberately shutting down power plants to increase the price of California electricity.
Over two and a half years after Enron collapsed into bankruptcy, the first criminal trial involving former Enron executives is currently scheduled to begin in Houston on August 16 before U.S. District Judge Ewing Werlein in the case known as “The Nigerian Barge case.”