Houston Chronicle reports on some of the details emerging from the notorious Fastow Notes, showing that the government hid key evidence from Jeff Skilling’s defense team. Two examples cited in the article were:
• Fastow testified Skilling knew about a so-called “Global Galactic,” or list of Fastow partnership deals with Enron in which the partnership was guaranteed not to lose money. The notes say Fastow “doesn’t think (he) discussed the list w/JS.”
• Skilling gave Fastow a “bear hug” to signify that the partnership wouldn’t lose money if it bought three power plants moored on barges from Merrill Lynch & Co., which had agreed to buy and hold them for six months. The notes show Fastow told investigators that he “did not obligate” Enron to buy the barges from Merrill, and the company agreed to try to find another buyer.
“There is no innocent explanation for the suppression of this evidence,” Petrocelli said in the filing.
Petrocelli, as usual, is succinct and correct. My feeling is that by the time Skilling’s conviction is overturned on April 2, Petrocelli will have shown the entire prosecution to be a hollow, politically motivated construct with nothing at all of substance – much like the prosecutors themselves.