Merrill execs face retrial in Enron case

HOUSTON – The retrial of three former Merrill Lynch & Co. executives in an Enron-related case, alleging fraudulent sales of power-generating barges off Nigeria, yesterday was set for Jan. 28 in Houston federal court, Bloomberg News reports.
The defendants’ convictions in the case were overturned last year by an appeals court; since then, their lawyers had been seeking to persuade prosecutors to downgrade the case to a civil lawsuit rather than pursue criminal charges. U.S. District Judge Ewing Werlein set the trial date after learning that plea talks had failed, Bloomberg said.
“In overturning the convictions, the appeals court didn’t say no crime was committed,” noted Assistant U.S. Attorney Arnold Spencer. “There have been people who have pleaded guilty and been convicted in this crime. We’re looking forward to trial.”
The bankers – James Brown, a former Merrill strategic leasing vice president; Robert Furst, another former vice president; and Daniel Bayly, a former global head of investment banking; won reversals when the New Orleans appeals court threw out portions of the jury verdict – face up to 15 years if convicted.