“Flood of Fees Draining Enron Funds”

Fees in the Enron bankruptcy, which include accountants’ and advisers’ as well as lawyers’ fees, total $496 million through May, the richest in history (see Dec. 27-29, 2002). “Texas Attorney General Greg Abbott, whose state is a major creditor, complains that attorneys in the case are ‘lining their pockets. There is a lot of money […]

Fees in the Enron bankruptcy, which include accountants’ and advisers’ as well as lawyers’ fees, total $496 million through May, the richest in history (see Dec. 27-29, 2002). “Texas Attorney General Greg Abbott, whose state is a major creditor, complains that attorneys in the case are ‘lining their pockets. There is a lot of money sloshing around, and the participants are taking it away from the people who really deserve it,’ he said in an interview. John W. Toothman, president of the Devil’s Advocate, a Northern Virginia company that scrutinizes legal fees, and co-author of a textbook on fees, calls it a ‘feeding frenzy.’ Enron ‘has turned its pockets inside out, and everybody who can get in line gets a piece. The lawyers have been first in line.'” (Peter Behr, Washington Post, Jun. 28).

Comments are closed.