Enron Mail

To:kenneth.lay@enron.com, boardroom@enron.com
Subject:Financial Disclosure of $1.2 Billion Equity Adjustment
Date:Fri, 19 Oct 2001 11:02:44 -0700 (PDT)

For the first time in 22 years of service for Enron I'm ashamed to admit th=
at I work for Enron! I have lost all respect for Enron Senior Management a=
nd agree with the Financial Analyst when they say that Enron Senior Managem=
ent can not be trusted. Ethics and Morals are either something everyone el=
se needs to have except Senior Management or somewhere along the way Senior=
Management started believing the end justifies the means. The communicati=
on the Employee's have received over the last few years about values such a=
s Respect, Integrity, Communication and excellence must be propaganda inten=
ded to get Employee's to believe Senior Management really supported these v=
alues so that no one would really notice that their actions represented som=
ething just the opposite.

I can not believe that Senior Management lacks the understanding of human n=
ature to totally ignore the fact that if someone does not trust what you ha=
ve said in the past you should not try and conceal pertinent information in=
the future. Then to allow an Enron Spokesperson to speak for Enron with t=
he statement "It's just a balance-sheet issue" implies to me that this ind=
ividual does not know what a Balance Sheet or Income Statement is and certa=
inly should not be speaking to the public. If you are going to play the ga=
me of lying, cheating and stealing at least be intelligent enough to presen=
t a plausible story. To use phrases such as it was a hedge against fluctua=
ting values in some of Enron's broadband telecommunications and other techn=
ology investments is a complete insult to my intelligence and to the defini=
tion of the word "HEDGE". A hedge by definition implies that the upside an=
d downside exposure has been limited. It frightens me that we are out aski=
ng customers to let Enron help them "HEDGE" their risk when I'm not sure En=
ron's Senior Management understands what a hedge means?

I'm also confused as to the personal financial involvement of Andy Fastow i=
n the investment vehicle that generated this write down. I must be confuse=
d in that as a Trader Enron has asked me to sign documents declaring that I=
will not have any personal financial involvement in anything involving the=
Natural Gas Business. This must be an example of as my father used to say=
" do as I say not as I do"? I guess we need to have audits performed of Se=
nior Managements financial interest to insure their actions are as good as =
their word?

The fact that Senior Management and the ENE Board of Directors knew these t=
ransactions were being used to manipulate earnings and the stock price and =
took advantage of that knowledge to sell their ENE stock options in my opin=
ion is "CRIMINAL". It provides me no comfort to know that the biggest perp=
etrators of this fraud have left Enron in recent months. These individuals=
have stolen billions of dollars from ENE stockholders and Employees and ne=
ed to pay the price for such fraudulent activity. They are set for life, h=
aving all the money they could ever need, while Employees and Stockholders =
have lost their life savings. You have completely failed at the job you we=
re hired to perform. If this type of activity would have occurred farther =
down the organization no one would hesitate to fire the individuals involve=
d and to institute criminal charges. =20

I for one can not wait until the All Employee meeting next week. I do not =
think anyone wants to hear about third quarter results because how could we=
trust what is said anyway. Instead I feel you owe the ENE Employee's a th=
orough explanation of how you failed to perform your responsibilities, what=
actions are going to be taken and most of all apologize for the job perfor=
mance to date.=20