Kenneth Lay, former Enron chairman, sold shares in the company after being warned by a senior colleague that it could face collapse because of its off-balance-sheet transactions. Regulatory filings show Lay sold shares worth around $20 million back to the company after Aug. 15, when he was told by Sherron Watkins, executive v.p., of her fears the company's off-balance-sheet activities threatened Enron's survival. Other staff were prevented from selling stock by restrictions in their 401(k) retirement investment plans (Financial Times, 2/20).
February 20, 2002