Former Enron exec
tells all in new book

By Jon Dougherty

A former Enron executive says in a new book that the scope of the energy giant’s malfeasance was so broad and pervasive that it was “virtually impossible to believe” only a few top-level officers knew the corporate giant was in serious financial trouble before it went belly-up last fall.

Lynn Brewer, who worked at Enron from March 1998 until March 2001 in at least four divisions, told WorldNetDaily her manuscript, “House of Cards: Confessions of an Enron Executive,” co-written with best-selling author Matthew Scott Hansen (“Andy Kaufman Revealed”), paints a portrait of widespread malaise and malfeasance among mid- to upper-level managers, including some of the corporation’s top officials.

One of the top leaders, former chief financial officer Andrew Fastow, surrendered to FBI agents Wednesday and will face fraud charges related to the company’s collapse.

Brewer, who is now married but was still single while at Enron under her maiden name of Morgan, said she quickly discovered evidence of malfeasance shortly after going to work for Enron, but for three years no one would respond to her concerns.

When she left after the company imploded, she says she tried to offer information to lawmakers and others in the media, but no one was interested.

In a Dec. 20 e-mail to Sen. Byron Dorgan, D-N.D., a member of the Energy and Natural Resources Committee and chairman of its Subcommittee on Water and Power, Brewer introduced herself as a former Enron employee with “documentation of corporate fraud” that could also amount to “bank fraud,” as well as “evidence of espionage.”

She also said she called Dorgan’s office twice – and supplied phone records to back up her claim – but a spokesman from the senator’s office told WorldNetDaily they had no record of her attempts to contact them.

Brewer said she then sent the same message to a number of television news programs. One – a program that airs on Court TV – was interested, but after that initial show of interest, she never heard back from the show’s producers.

That left her no alternative but to put her revelations into a book and seek a publisher, she said.

She found one at publishing giant HarperCollins, which agreed to what Brewer calls a six-figure advance for the manuscript, to be published under Harper’s ReganBooks imprint.

But five weeks later, said Brewer, HarperCollins sent a letter to James C. Vine, Brewer’s literary agent, backing out of the deal, citing legal concerns and privacy problems regarding a number of Enron employees and officials named in the book.

A spokeswoman for HarperCollins declined to give WorldNetDaily more specific details as to why the company reneged on its offer to publish Brewer’s book.

“What I can tell you is that for a variety of reasons the book was not suitable for publication,” said the spokeswoman.

The letter said the publisher was concerned about libel and the inability to independently verify some facts, but Brewer says she wrote the book according to the publisher’s instructions.

“Our proposal matched the manuscript perfectly,” she said, adding that she had documentation for every charge made in the book – which ReganBooks never asked for, she said.

The book was eventually picked up by Bobby Bernshausen, president of VirtualBookworm.com, and released in September.

Brewer also discusses:

  • How she uncovered alleged massive bank fraud and was told to conceal it;
  • Her confrontation with Chief Executive Officer Jeffrey Skilling over an alleged conspiracy to sell substandard gas;
  • The nature of partnerships formed by now-indicted CFO Fastow, and how they were designed to thwart attempts to decipher them; and
  • What she calls the “extraordinary” behavior of Enron’s electricity traders and an alleged scheme to “print money.”

The book also discusses a letter Enron chief Kenneth Lay sent to then-Texas Gov.
George Bush – a copy of which was obtained by WND. The letter discusses a proposed oil and gas pipeline to be built in Central Asia – current site of U.S. military operations against the al-Qaida terrorist organization:

    Ken Lay had written to Texas Governor George W. Bush on April 3, 1997, advising him to befriend Ambassador Sadyq Safaev, Uzbekistan’s ambassador. Lay indicated that this would be really good for Enron because they were in the midst of negotiating a joint venture with Uzbekistan and Russia to develop a huge natural gas pipeline in the region. Enron later received funding from the U.S. government in 1998 to perform a feasibility study for moving the vast stores of gas from Russia to the Black Sea. The most efficient path of the 1,040-mile Trans-Caspian Pipeline was to begin near the town of Chardzhou in northern Turkmenistan and extend southeasterly through Afghanistan to an export terminal that would be constructed on the Pakistani coast on the Arabian Sea.

    While only about 440 miles of the pipeline would cut through Afghanistan, John J. Maresca, Vice President of International Relations for Unocal, had testified before a House subcommittee that we “cannot begin construction until an internally recognized Afghanistan government is in place.” In June 1998, Amoco announced it would partner with General Electric and Bechtel, Enron’s very own partners in India, to build a $3.0 billion Trans-Caspian Pipeline. It’s interesting and fortuitous for the oil and gas business that we had a damn good reason to get rid of the Taliban. Of course I mean the retaliation.

More than anything, Brewer told WorldNetDaily, the book shows that the malfeasance which eventually led to Enron’s collapse was not a short-lived, narrowly focused problem centered on a few key executives. She said problems were widespread and occurred over years.

“I think it’s absolutely appalling that the world believes that a company the size of Enron can crash to the ground virtually overnight and no one see it coming,” she said. “In many cases, what you’ll see, there were those of us inside the organization who tried to tell people, but no one would listen.”

In all, Brewer said, the book “is as much a story about those who refuse to tell the truth as those who refuse to listen.”

She also had a warning for other corporations.

“An unethical environment if left undetected will, like a cancer, metastasize and kill the body as it did at Enron.”