The Fascinating Dark Story Of Andrew Weissmann And Enron

If you invested in stocks in the United States during the 1990s and early 2000s, it is inevitable that you were barraged with news coverage and opinions about the notorious company Enron, which tumbled from over $400 Billion in total value, and a stock price of $80 to a stock price of just over $0.65 in less than two years.

After a series of epically corrupt moves by several of their managing partners, Enron finally imploded in 2001. Directly following the company’s historic implosion, federal authorities under the Justice Department of then-President George W. Bush began to investigate the collapse, calling it the ‘greatest white-collar crime in the history of the world.’

There’s no doubt, based particularly on the fact that members of Enron’s management were using shell companies to artificially inflate the financial prospects of Enron, that a lot of people deserved to go to prison… and they did.

The Justice Department eventually charged more than 30 individuals on charges including fraud, perjury, and obstruction related to the collapse of Enron. Three of Enron’s top executives were amongst the 30+ individuals convicted following the investigation.

‘Legal Eagle’ Andrew Weissmann Helps Lead Enron Prosecutions

One of the rising stars within the Justice Department that was tapped to oversee the extremely high-profile Enron investigation was none other than Andrew Weissmann, yes, the same Andrew Weissman you now see on your television screen on MSNBC anytime a pressing legal question arises.

Weissmann, who grew up in New York City, graduated with a bachelor’s degree from the prestigious Princeton University in 1980. He received his JD from Columbia Law School in 1984.

After an impressive 10 year stint serving as Assistant U.S. Attorney in the U.S. Attorney’s Office for the Eastern District of New York, Weissmann was promoted to the Enron taskforce in 2002 by President George W. Bush.

He was first appointed Deputy Director of the Federal Bureau of Investigation’s Enron Task Force, and eventually named the director of the entire task force. Weismann’s credentials are impressive to say the least.

Andrew Weissmann Takes Down Arthur Andersen LLP And 80,000 Employees

As part of his official actions as a deputy director, and eventually director of the Enron task force, Andrew Weissmann successfully argues in U.S. District Court that Enron’s major third-party auditor, Arthur Andersen LLP, had conspired with Enron, even shredding document, to illegally protect itself from prosecution by destroying evidence.

Weissmann successfully made his point in court, leading to Arthur Andersen being convicted of obstructing justice.

In 2002, the Chicago-based firm which employed 80,000 Americans tragically had to close its doors, leaving its staff without jobs. This was not Enron, but a third-party auditor which had come into the line of Andrew Weissmann’s task force investigation into what was called ‘the most complex white-collar crime’ ever investigated by the Justice Department.

Supreme Court Reverses Conviction, Vindicates Arthur Andersen In 2005

In 2005, three years after Arthur Andersen had shuttered its doors, leaving tens of thousands of Americans without jobs, the Supreme Court unanimously overturned the conviction of Arthur Andersen.

More troubling is the revelation in this decision that Andrew Weismann had illegally persuaded the trial Judge to advise jurors that they could convict the Arthur Andersen accounting firm regardless of whether its employees had knowingly violated the law.

In their challenge, which was eventually heard and was unanimously accepted by the Supreme Court, Arthur Andersen correctly stated that there were incorrect instructions given to the Jury during this trial. These instructions were given at the behest of young prosecutor Andrew Weissmann.

In The Supreme Court’s decision, Chief Justice William H. Rehnquist stated that Arthur Andersen’s lawyer had ‘vigorously disputed’ the incorrect instructions given to the jury. Chief Justice Rehnquist stated that the Judge presiding over the case “failed to convey the requisite consciousness of wrongdoing. Indeed, it is striking how little culpability the instructions required” to convict.

Weissmann Names 114 Individuals As ‘Unidicted Co-Conspirators’, Blocking Key Testimonies

As part of the Federal Bureau of Investigation’s prosecution of Enron, Andrew Weissmann successfully charged 30 individuals involved in the management of the company.

In a questionable move that many considered to be ‘extralegal,’ Weissmann simultaneously released a list of 114 individuals that his team considered to be ‘unindicted co-conpsirators’. Individuals who had not been charged as part of Weissmann’s investigation were now being ‘tarred and feathered’ as a result of the Enron investigation.

Reputations were destroyed, and lives were ruined. More importantly, key individuals within Arthur Andersen and Enron were unable to testify in court in fear of being indicted as a ‘co-conspirator.’

Weissmann’s tactic of unmasking individuals who had not been indicted is still a source of great controversy today, with some claiming that had testimonies from individuals within these companies may have pushed the case into a totally different territory.

Defense lawyers have also alleged that Weissmann and his team withheld favorable evidence in some of their cases.

Upon appeal, three individuals working for Merrill Lynch who were charged had their convictions overturned for reasons unrelated to the evidentiary concerns.

One former FBI Agent who worked with Weissmann on the Enron investigation said of the top prosecutor’s conduct,

“He was not going to be pushed around. f you want to get to the bottom of the truth – if you want justice – you want Andrew Weissmann as the prosecutor on that case.”

A Mixed Memory On Weissmann’s Involvement In The Enron Investigation

When examining Andrew Weissmann’s interesting involvement as Chief prosecutor of the Enron scandal, it’s hard to ascertain exactly where the public stands. On one hand, Weissmann was part of a team of prosecutors that brought down white-collar criminals.

On the other hand, particularly examining Weissmann’s actions in the Arthur Andersen case, there are many critics of the notorious prosecutors tactics, particularly as it pertains to the attorney’s ethics.

Either way, the former prosecutor’s involvement in this historic case is certainly intriguing, especially considering the prominent political career he has gone on to have since.