California files lawsuit against Enron seeking close to

California files lawsuit against Enron seeking close to $2-bil

San Francisco (Platts)--17Jun2004


California Attorney General Bill Lockyer Thursday said the state had filed a
lawsuit against Enron in an effort to recover profits the former energy
trading giant made through alleged market manipulation and commodities fraud
during the state's 2000-2001 power crisis. Filed with the Alameda County
Superior Court, Lockyer's complaint alleges Enron violated the state's Unfair
Competition Law and commodities fraud statute. It asked the court to award
civil penalties of $25,000 for each commodities fraud violation and $2,500 for
each UCL violation, but it did not state the total relief sought. "Beginning
as early as 1998 and continuing at least through 2001, the Enron defendants
willfully engaged in a startling array of manipulative and fraudulent trading
schemes," the lawsuit said. At a press conference in Santa Monica, California,
Lockyer said the suit may bring upwards of $2-bil to the state's ratepayers.
He hoped that the state would be able to recoup the money before the bankrupt
Enron's assets are divided up in court.

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