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Scanned from February 26, 2002 issue.
Enron The Untold Story
The Enron Corporation was a "sin city" of greed, adultery and
corruption, where top executives lived the high life, and ordinary
investors lost their shirts.
And The ENQUIRER has learned exclusively that the company secretly
employed CIA agents to carry out its nefarious dealings!
"It was all sex, power and booze at the top," a former Enron
employee declared.
An ENQUIRER' investigation has revealed:
� Enron executives frequented several Houston strip clubs and billed
thousands of dollars directly to the company - including the tab for
VIP rooms where sexual favors were dispensed to big spenders.
� Enron-sponsored parties would often spiral out of control with
senior officials bar tabs skyrocketing to over $10,000.
� Kegs of beer were brought into Enron offices and employees drank
excessively while at work.
� Divorce rates among senior Enron officials were high and
adulterous romances were widespread among employees - including
attractive young women who rose through the ranks thanks to their
connections with top execs.
"Enron was completely scandalous," former employee Janice Holloway
told The ENQUIRER.
"The place was full of arrogance, superegos and betrayal!"
Enron's high-flying style of business came to a crash in October
when, it was discovered the company covered up huge debts. The
company's collapse led to the layoff of 4,000 employees, who lost
not only their .jobs but also their retirement savings - as did
millions of ordinary investors. The company's debacle has shaken
America's economy and thousands of Americans have been ripped off.
The massive lies were fueled in part by free-spending executives who
used investors' funds for sex and booze, insiders reveal.
Sources at the Houston strip club Treasures told The ENQUIRER that
Enron executives would often ring up thousands of dollars on private
dances and expensive champagne.
"Whenever guys from Enron came into the club they bragged about who
they worked for and the girls would flock to the tables knowing
they'd be tipped extremely well," a dancer who has worked at
Treasures for over three years disclosed.
"Typically a group of have or six would come in for lunch, drink a
few martinis and get private lap-dances from the girls. They always
paid their bill with credit cards that clearly said 'Enron' on them.
"Most of the guys were real hounds. They handed out their business
cards and 4 encouraged the girls to call them. Most of these guys
wore wedding rings, too.
"They would push it pretty far with the girls. They got away with a
lot more
physical contact than most customers because they were such big
tippers. They
couldn't keep their hands off the girls."
Enron employees were also known to spend thousands of dollars in the
club's exclusive VIP room, the dancer told The ENQUIRER.
"In the VIP room it costs $200 just to get one table and sometimes
these guys would get three or four tables.
"Anything goes in the VIP room. It isn't uncommon fox the girls to
provide sexual favors for big spenders. And a lot of these
middle-aged Enron executives were some of the biggest spenders in
the club."
Enron-sponsored parties often turned into raucous y all-night
drinking fests. At one bash, company officials even shelled out
money to bring in an elephant!
"There was a party at the Houston restaurant Teala's that was
completely out of control," said the former employee.
"Over 300 employees showed up and the place went totally wild.
Enron even hired a scantily clad girl to dance around with bottles
of alcohol that she poured down the throats of employees.
"After she poured the alcohol in their mouth she would put a pair of
women's underwear on their heads and press her breasts into their
face and shake them heads around!"
Teala's general manager Gustavo Torres told The ENQUIRER: "The Enron
guys that night went totally out of control. It seemed more like a
fraternity party than a corporate-sponsored event. You would have
never thought these people were professional businessmen and women.
"It was obvious they were there to get plastered. Guys and girls
were dancing on tables and on the stairway. It was six hours of
straight drinking. People were stumbling in and out of the place all
night!"
Enron officials also drank in the company's building during the day
-and in one instance in October 2001, "Enron employees wheeled kegs
of beer right into the trading room floor during business hours," an
exstaffer revealed.
"Here we were running one of the largest companies in the world, and
our traders and executives were getting drunk in the office.
It was total debauchery!"
Senior Enron officials often drank at Nifa's Mexican Restaurant
across the street from the company's headquarters, Nifa's manager
Silvia Schroedar told The ENQUIRER.
"Enron employees used to come in here all the time on their lunch
breaks and put back three or four margaritas. One time they even
ordered a $3,000 buffet and we delivered wine, beer and margaritas
directly to the office building."
In a detailed five-page email sent to The ENQUIRER, a group of
management-level former employees knowledgeable about the inner
workings of Enron claimed:
*One top executive brought three stripper into his office one night
af-ter business hours. They were caught on a security camera - but
he got off with a slap on the wrist.
* Another top man at Enron was engaged to his secretary - but having
sex on the side with one of his executives.
* Even in a company where beautiful women were routinely on a fast
track to promotion, one executive secretary's $650,000 salary raised
eyebrows.
"Talk about the extramarital sex lives of the executives and their
staff was rampant," another former employee said.
"Every week you would hear about a certain executive getting a
divorce, or that so-and-so was sleeping with his secretary.
"These executives would spend more time with the secretaries and
administrative assistants than they would with y their wives."
An inside source disclosed: "As soon as an attractive girl moved up
to the executive suites, people started laying bets on how long it
would be before she started dating her married boss.
"Many of the girls were young and impressionable and they were easy
prey for older men who flaunted their wealth and power and thought
of illicit sex as their right.
"One top executive was having affairs simultaneously with his
secretary and a harddriving woman executive.
"Everyone thought another boss was a happily married man - until a
beautiful new secretary started working in the building He made a
shameless beeline for her, pursuing her with flowers and gifts."
Said an Enron insider: "You could watch the relationships grow
between some upperlevel management and much younger attractive
girls.
"And soon enough, these women would be moved up the corporate ladder
past older, more qualified employees. It was easy for young pretty
girls to flirt their way into cushy positions.
"The executive suites on the 49th and 50th floor of the company's
headquarters were known as the `Bachelor Pads' among employees. Even
though most of the higherups were married men, the attractive young
secretaries up there made it seem like a bachelor's dream."
Former Enron graphic designer Chris Miller told The ENQUIRER details
of the greed that was ingrained at Enron: "The 50th floor seemed
like `Star Trek'to me. They had a gigantic brass telescope where
they could look out at the city. They also had flat-screen
televisions and all the bells and whistles you could imagine. It
didn't seem like an office, it seemed more like a futuristic dream
home.
"Some offices were filled with $75,000 paintings. There were catered
lunches and anything they needed was right there at their
fingertips."
It wasn't just the male Enron executives who led 1 robust
lifestyles. Enron director Rebecca Mark - who has been called one of
the most powerful businesswomen in the world - was known as much for
her wild streak as for the cutthroat business attitude that earned
her the nickname "Mark the Shark."
She arrived at one company party on the back of a
Harley-Davidson motorcycle -dressed as a biker girl!
"Rebecca totally adhered to the `work hard, play hard' motto at
Enron ," said the ex staffer. "While at work she was all business,
but at parties and Enron events she really let her hair down."
An inside source told The ENQUIRER: "It was a31 about money, money,
money. Greed, sex and power were what motivated everyone at the top.
"It seemed like everyone was getting a promotion. Some traders
earned bonuses as high as $300,000, and you knew when they'd been
handed out because new Porsches anal BMWs started rolling into the
staff parking lot"
Former chief executive Jeffrey Skilling earned more than $30 million
from sales of Enron stock in the year 2001. And chairman Kenneth
Lay, a former Pentagon economist, raked in $100.3 million before the
company crashed and ordinary investors - including pension funds -
were socked with huge losses.
But the corruption at Enron went far beyond unbridled greed and
rampant sex - it also involved international espionage and
electronic spy warfare, The ENQUIRER has learned.
"No one cared about morals at Enron, at least not at the upper
levels. It was an `anything goes' atmosphere and they got the help
of the U.S. government along the way," said a top Washington
insider familiar with several secret investigations into the
company.
"There have been at least 20 CIA agents on the payroll of Enron in
the past eight years. They were given leaves of absence without pay
and put on the Enron payroll.
"They trained Enron employees in intelligence gathering and security
and also worked in other corporate capacities around the globe. It
was through intelligence gathering that Enron was able to get
billions of dollars in lucrative contracts in Asia, South America
and Europe.
"Basically what the CIA operatives were able to provide was detailed
information on bids made by foreign companies on projects of
interest to Enron.
"They used human intelligence and also info gleaned from a satellite
project called 'Echelon.' The satellites intercepted e-mails, phone
calls and faxes with detailed business information.
"With this information, Enron was able to put pressure on foreign
governments through powerful figures in U.S. government. Enron could
easily go to a local authority in, for example, Saudi Arabia or
India, and say, `Our government is not going to be too happy with
you unless Enron gets the contract."'
Amnesty International cited Enron for engaging in human rights
violations and conducting illegal payoff's to police and mid-level
officials in India to put down protests over its construction of a
$2.8 billion power plant in Dabhol.
"It was the CIA-trained employees and CIA, insider information that
made it possible for Enron to force its will on the citizens of
Dabhol," said a retired CIA operative.
The opposition to Enron's CIA tactics at Dabhol became so critical
last August that Vice President Dick Cheney implored Indian
government officials to support the completion of Enron's project.
The Washington insider disclosed: "Using the CIA for economic
intelligence began with President George Bush Sr. and then exploded
under President Clinton, when even the Commerce Department was
infiltrated by CIA agents.
"Pure and simple, US. intelligence agents were involved in corporate
espionage."
A source with ties to the CIA revealed: "The cozy deal between Enron
and the CIA allowed the `on loan' undercover operatives to return to
the Agency's payroll before Enron's collapse."
Agents believe that foreign agents were also at work in Enron, the
Washington insider added.
"What has the Justice Department investigators upset now is that a
rogue CIA agent may have been compromised by a foreign nation. The
money-hungry atmosphere at Enron left many vulnerable to blackmail.
"We know that there are intelligence agents from at least three
European countries - Dance, Germany and Italy-who are currently very
interested in the Enron probes. This thing has the potential of
being the biggest scandal ever!"
And what makes the scandal most outrageous is the suffering it's
caused rank and-file employees and investors who were wiped out by
the company's collapse.
Many former employees were enraged when Enron founder Lay's wife
went on TV and said she and her husband were close to bankruptcy.
"When she cried, I cried - with anger!" one former worker declared.
"They've got palatial homes all over the place and maybe they'll
have to sell a few. But how dare she plead poverty when so many
ex-employees are starting to wonder where their next meal and the
mortgage money is coming from!"
- KEVIN LYNCH,
MICHAEL HANRAHAN
and DAVID WRIGHT
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