{"product_id":"conspiracy-of-fools-isbn-9780767911795","title":"Conspiracy of Fools","description":"\u003cb\u003eFrom an award-winning \u003ci\u003eNew York Times\u003c\/i\u003e reporter comes the full, mind-boggling true story  of the lies, crimes, and ineptitude behind the Enron scandal that imperiled  a presidency, destroyed a marketplace, and changed Washington and Wall Street forever. \u003c\/b\u003e\u003cbr\u003e\u003cbr\u003e It was the corporate collapse that appeared to come out of nowhere. In late  2001, the Enron Corporation—a darling of the financial world, a company whose executives  were friends of presidents and the powerful—imploded virtually overnight, leaving  vast wreckage in its wake and sparking a criminal investigation that would last for  years. \u003cbr\u003e\u003cbr\u003e Kurt Eichenwald transforms the unbelievable  story of the Enron scandal into a rip-roaring narrative of epic proportions, taking readers behind every closed door—from the Oval Office to the executive suites,  from the highest reaches of the Justice Department to the homes and bedrooms of the  top officers. It is a tale of global reach—from Houston to Washington, from Bombay  to London, from Munich to Sao Paolo—laying out the unbelievable scenes that twisted  together to create this shocking true story. \u003cbr\u003e\u003cbr\u003e Eichenwald reveals never-disclosed  details of a story that features a cast including George W. Bush, Dick Cheney, Paul  O’Neill, Harvey Pitt, Colin Powell, Gray Davis, Arnold Schwarzenegger, Alan Greenspan,  Ken Lay, Andy Fastow, Jeff Skilling, Bill Clinton, Rupert Murdoch and Sumner Redstone.  With its you-are-there glimpse into the secretive worlds of corporate power, \u003ci\u003eConspiracy  of Fools\u003c\/i\u003e is an all-true financial and political thriller of cinematic proportions.Praise for Kurt Eichenwald’s bestseller, \u003ci\u003eThe Informant\u003c\/i\u003e:\u003cbr\u003e\u003cbr\u003e“Ranks with \u003ci\u003eA Civil Action\u003c\/i\u003e as one of the best nonfiction books of the last decade.”\u003cbr\u003e—\u003ci\u003eNew York Times Book Review\u003c\/i\u003e \u003cbr\u003e\u003cbr\u003e“The thriller of the year—and it’s all true!”\u003cbr\u003e—\u003ci\u003eDallas Morning News\u003c\/i\u003e \u003cbr\u003e\u003cbr\u003e“One of the most intriguing—and nearly unbelievable—nonfiction books in recent memory . . . a tangled tale worthy of John Le Carré.”\u003cbr\u003e—\u003ci\u003ePortland Oregonian\u003cbr\u003e\u003cbr\u003e\u003c\/i\u003e“A compelling narrative . . . a business book for Grisham readers.”\u003cbr\u003e—\u003ci\u003eChicago Tribune\u003c\/i\u003e \u003cbr\u003e\u003cbr\u003e“Reads like a well-written whodunit.”\u003cbr\u003e—\u003ci\u003eDenver Post\u003c\/i\u003e\u003cbr\u003e\u003cbr\u003e“A spellbinding account, as much of a page-turner as a Grisham novel.”\u003cbr\u003e—\u003ci\u003eWashington Monthly\u003cbr\u003e\u003c\/i\u003e\u003cbr\u003e“I guarantee it’ll keep you reading late into the night.”\u003cbr\u003e—Jonathan Harr, author of \u003ci\u003eA Civil Action\u003cbr\u003e\u003c\/i\u003e\u003cb\u003eKurt Eichenwald\u003c\/b\u003e wrote for the \u003ci\u003eNew York Times\u003c\/i\u003e for more than twenty years before becoming a senior writer for \u003ci\u003eNewsweek\u003c\/i\u003e.\u003ci\u003e \u003c\/i\u003eA two-time winner of the George Polk Award for excellence in journalism and a finalist for the 2000 Pulitzer Prize, he has been selected repeatedly for the \u003ci\u003eTJFR Business News Reporter\u003c\/i\u003e as one of the nation’s most influential financial journalists. His book, \u003ci\u003eThe Informant\u003c\/i\u003e was turned into a major motion picture. He lives in Dallas with his wife and three children.CHAPTER 1\u003cbr\u003e\u003cbr\u003e The two men pushed through the glass-and-chrome doors of the Enron building   and hurried down the polished granite steps outside. Across the street, a white fountain   resembling a mammoth three-tiered wedding cake bubbled in the brilliant winter morning.   The sounds of splashing receded as the men crossed Smith Street, a main artery for   downtown Houston. Rounding a corner, the older man, David Woytek, glanced at his   watch. \u003ci\u003eFifteen minutes to go\u003c\/i\u003e. Fifteen minutes, he felt sure, till all hell broke   loose.\u003cbr\u003e\u003cbr\u003e Without a word, he picked up the pace, followed in step by John Beard, a   colleague from Enron's internal-audit department. On that morning, February 2, 1987,   the two were eager to meet with Ken Lay, to finally prove that two of his underlings   had cheated his company. Beard carried the damning evidence—bank records showing   millions of dollars siphoned from Enron into personal accounts, transactions so suspicious   that the bank itself raised a red flag to Woytek. But, most delicious of all, the   executives under investigation—Louis Borget and Thomas Mastroeni, two top officers   in Enron's oil-trading unit in Valhalla, New York—would be at the meeting, defending   themselves with what Woytek and Beard were certain would be a tangle of lies.\u003cbr\u003e\u003cbr\u003e The   proof was strong, but the auditors knew it would need to be. Borget was Enron's earnings   Svengali, a man whose business reliably brought in tens of millions of dollars in   badly needed annual profits. He and Mastroeni, his top finance executive, were rumored   to consort with the rulers of Saudi Arabia and Kuwait, contacts everyone believed   gave them strong knowledge about the inner workings of OPEC, the Arab petroleum cartel.   Taking them down would mean losing their connections and dismantling their profit   machine at a time when Enron was struggling.\u003cbr\u003e\u003cbr\u003e But Woytek and Beard believed Lay would   have no choice; their case was ironclad. Mastroeni had opened an Enron corporate   account at Eastern Savings Bank, listing himself and Borget as the signers. But neither   had bothered to tell Enron about the account, and it was not recorded in the company's   books. Millions in corporate cash had been wired there, about half of which ended   up in Mastroeni's personal accounts. The dealings had all the earmarks of some multimillion-dollar   scam, with Enron as the mark.\u003cbr\u003e\u003cbr\u003e Woytek and Beard turned onto Dallas Street, two blocks   from their destination, Enron's other offices at the Houston Natural Gas building.   The streets of downtown seemed almost abandoned that morning, with only a smattering   of cars around, a reminder that the years-long oil bust was still wreaking its havoc   on Houston.\u003cbr\u003e\u003cbr\u003e The two auditors walked into the lobby, taking the elevator to the sixteenth   floor. There, a receptionist directed them to the office of Mick Seidl, Enron's president.   Lay had borrowed the office for the morning meeting while Seidl was on the road.\u003cbr\u003e\u003cbr\u003e They arrived in the doorway of the large, wood-paneled office. Borget and Mastroeni   were already inside, deep in discussion with John Harding and Steve Sulentic, the   home office's nominal supervisors of the oil unit. When the auditors walked in, the   conversation stopped.\u003cbr\u003e\u003cbr\u003e \"Hey,\" Harding said. \"Good to see you.\"\u003cbr\u003e\u003cbr\u003e There were handshakes   all around. Borget picked up a thick stack of documents and slid them across the   table.\u003cbr\u003e\u003cbr\u003e \"This is a memo with everything you need to know about these transactions,\"   he said. \"All the relevant banking records and other material are attached.\"\u003cbr\u003e\u003cbr\u003e \"Thanks,\"   Woytek replied. \"We'll look through it.\"\u003cbr\u003e\u003cbr\u003e Beard picked up the documents and left   Seidl's office, following Woytek to an unoccupied secretary's desk. He set the documents   down, leaning over as he read them. \"CONFIDENTIAL,\" the first page blared. \"Memo   for the File.\"\u003cbr\u003e\u003cbr\u003e Step by step, the memo described how the transactions came about.   In one paragraph it mentioned some attached bank statements. Beard thumbed through   the pages and found the records. He studied them for an instant.\u003cbr\u003e\u003cbr\u003e \u003ci\u003eWait a minute.\u003c\/i\u003e\u003cbr\u003e\u003cbr\u003e He scanned the records again, fearful he had made some mistake. No, there was no   doubt. He glanced over at Woytek.\u003cbr\u003e\u003cbr\u003e \"Dave, come here,\" he said. \"Take a look at these.\"\u003cbr\u003e\u003cbr\u003e Woytek strolled over and skimmed through the statements. They were from Eastern   Savings Bank, in the name of the oil-trading division. Nothing seemed surprising;   the discovery of that account had set off the investigation. With an almost imperceptible   shrug, Woytek looked at Beard, waiting to hear what he was missing.\u003cbr\u003e\u003cbr\u003e \"These are the   same statements we already have from the bank,\" Beard said. \"But this copy has been   altered.\"\u003cbr\u003e\u003cbr\u003e \"You've gotta be kidding me. Show me our copy.\"\u003cbr\u003e\u003cbr\u003e Beard fished through   his briefcase, pulling out an almost-identical set of the statements. Woytek laid   the pages side by side with the records from Borget.\u003cbr\u003e\u003cbr\u003e \u003ci\u003eUnbelievable.\u003c\/i\u003e The statements   were from the same account on the same date, but the numbers were different. The   original records showed hundreds of thousands of dollars sloshing in and out. In   this new copy, those transactions had simply disappeared. Woytek held Borget's records   up to the light. No lines. No shadows. No telltale signs anywhere of an alteration.   Somebody had put a lot of effort into this.\u003cbr\u003e\u003cbr\u003e Woytek chuckled. These traders were   planning to defend themselves to Lay—\u003ci\u003eusing dummied-up records\u003c\/i\u003e? This meeting was going   to be even more interesting than he had thought.\u003cbr\u003e\u003cbr\u003e \"Well,\" he said, looking up, \"that   settles it. Those two are gonna be fired \u003ci\u003etoday.\u003c\/i\u003e\"\u003cbr\u003e\u003cbr\u003e As the two auditors spoke, they   saw Lay and Rich Kinder, Enron's general counsel, walking toward Seidl's office.   Woytek and Beard gathered up their papers and stood to greet them. Everyone immediately   followed Lay into the office and took a seat around the conference table.\u003cbr\u003e\u003cbr\u003e After   some chitchat, Lay opened things up. \"Well, we know why we're here. So, Lou, why   don't you go ahead?\"\u003cbr\u003e\u003cbr\u003e Borget handed out copies of the memo with the attached bank   records. \"As everyone's aware,\" he began, \"questions have been raised about some   of the trading operation's financial transactions. We want to go through them so   that you know why these were done. I think everyone will be very satisfied with what   they hear.\"\u003cbr\u003e\u003cbr\u003e Borget and Mastroeni took turns laying out the story. Because of their   huge profits in 1986, they explained, company managers had asked them to find a way   to shift income into 1987, the current year; that way, Enron would have a jump on   hitting its profit projections.\u003cbr\u003e\u003cbr\u003e \"Now, we were told to get that done using whatever   legitimate business practice we could,\" Borget said, moving his hands as he spoke.   \"So we set up a system that's used by lots of other trading companies.\"\u003cbr\u003e\u003cbr\u003e The idea   was to conduct twinned trades that canceled each other out, known as a \"book-out\"   or a \"net-out.\" So, Mastroeni explained, they tracked down three trading companies—Isla   Petroleum, Southwest Oil \u0026amp; Commodities, and Petropol Energy—that wanted to boost   their 1986 earnings. Then, that December, Mastroeni and Borget entered into trades   that gave profits to the competitors and losses to Enron. The plan was to reverse   the trades in 1987, with Enron gaining the profits and the three others getting the   losses. All the parties would walk away even and with exactly the results they wanted.   The Eastern Savings account had been opened as a precaution, Mastroeni explained,   to hold the money until the trades were completed. But since it was in the company's   name, Mastroeni said, he had transferred the money to personal accounts, ready to   be returned to Enron once the 1987 trades were conducted.\u003cbr\u003e\u003cbr\u003e \"How many other transactions   have you guys done off the books?\" Woytek asked.\u003cbr\u003e\u003cbr\u003e \"This is it,\" Mastroeni replied.\u003cbr\u003e\u003cbr\u003e As the traders' words tumbled out, Woytek breathed deeply. \u003ci\u003eThis is the stupidest   thing I've ever heard\u003c\/i\u003e.\u003cbr\u003e\u003cbr\u003e Sulentic broke in, looking Lay in the eye. \"This was all   just a misunderstanding, Ken. Lou and Tom really believed they were acting in Enron's   interest. I say we accept that mistakes were made, do what needs to be done to correct   them, and move on to a profitable 1987.\"\u003cbr\u003e\u003cbr\u003e Lay nodded grimly, seeming lost in thought.   \"This is obviously not the type of thing we want to have happen,\" he said finally.   \"I understand what you were trying to do, but this is not the way to accomplish that.\"\u003cbr\u003e\u003cbr\u003e Everything would be undone, Lay ordered. The transactions must be reversed and the   off-books bank account shut down. And there would be other consequences. New controls,   new oversight. This would not happen again.\u003cbr\u003e\u003cbr\u003e Lay sat back. \"Does anybody else have   anything?\"\u003cbr\u003e\u003cbr\u003e \"Well,\" Woytek said, \"I have a couple of problems.\"\u003cbr\u003e\u003cbr\u003e There was a short   discussion about taxes and when the income would be reported. Heads nodded all around;   they agreed Enron would report all of its 1986 profits in that year and pay the taxes.   Woytek glanced at the traders. By raising such a tangential issue first, he seemed   to have lowered their guard. They looked relaxed, confident.\u003cbr\u003e\u003cbr\u003e Time to move in for   the kill.Behind thick corporate walls, in the shadows of Wall Street, along the corridors of political power, a scandal is brewing ...","brand":"Crown","offers":[{"title":"Default Title","offer_id":46302534762725,"sku":"NP9780767911795","price":23.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780767911795.jpg?v=1767724065","url":"https:\/\/k12savings.com\/products\/conspiracy-of-fools-isbn-9780767911795","provider":"K12savings","version":"1.0","type":"link"}