Enron execs charged in big blue scam. (Video-on-Demand).(Kevin Howard, Michael Krautz arrested for securities fraud and more for Blockbuster Video video-on-demand services)

Video Business,  March, 2003  by Sweeting, Paul

Tags: Blockbuster Inc., Enron Corp., VoD

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WASHINGTON -- Two Enron executives involved in the company's aborted video-on-demand venture with Blockbuster Video were arrested and charged by federal authorities on charges of securities fraud, wire fraud, conspiracy and making false statements to the FBI. According to an affidavit accompanying the arrest warrants, Kevin Howard and Michael Krautz deliberately violated accounting rules to allow Enron to fraudulently record $11 million in earnings in 2000 and 2001, then concealed aspects of the transaction from Enron's auditor, Arthur Andersen.

When questioned about the ...

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