The chief operating officer of Enron Corp.’s failed Internet unit pleaded guilty Tuesday to a single criminal conspiracy charge and agreed to cooperate with the government, as prosecutors continued to build their case against the Houston energy company’s top leaders.
Kevin Hannon, 44, knowingly misrepresented the health of the fledgling Internet business in 2000 and 2001 “to justify representations by senior management” and “to maintain the improperly inflated price of Enron stock,” according to his plea agreement.
Hannon faces up to five years in prison on the conspiracy to commit securities fraud charge. As part of the plea deal, he agreed to forfeit his claim on $8 million in back pay. Hannon also settled civil charges lodged by the Securities and Exchange Commission by turning over $2.2 million in assets and paying a $1 million penalty. The SEC barred Hannon from ever again serving as an officer or director of a public company.
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