Federal probe of Enron bankruptcy is led by Black Deputy Atty. Gen. Larry Thompson

Jet, Feb 4, 2002

U.S. Deputy Atty. Gen. Larry D. Thompson has been selected to head up the massive government investigation of Enron, the Houston-based energy-trading company that filed for bankruptcy late last year under a cloud of suspicion and accusations of fraud, accounting irregularities and obstruction of justice.

His most high-profile case to date, Thompson is charged with finding out the extent of the responsibility Enron should bear for leaving many of its employees, most of whom had a majority of their retirement savings invested in the company's stock, virtually wiped out.

Second in command behind controversial Atty. Gen. John Ashcroft, Thompson has received praise for his work at the Justice Department. Before coming to Washington, Thompson was a top federal prosecutor in Atlanta. He won over Republicans in 1991 when he helped guide Clarence Thomas through an emotional confirmation process to become a Supreme Court Justice.

While in Atlanta, Thompson worked for a law firm that served as counsel for Enron. And while some Democrats claim these ties to Enron that may prevent Thompson from carrying out his responsibility in the case, the Justice Department says it sees no conflict of interest.

Thompson will have to maneuver his staff around what promises to be a highly visible and politically charged case, which centers on the viability of 401K plans and the responsibility companies have to their employees. At issue: Should retirement plans force employees to buy stock in order to receive matching contributions? If so, how long should an employee have to keep that stock before being allowed to sell it? And, what obligation does a company have to tell its employees about business conditions?

Mismanagement and corporate greed have been blamed for the demise of Enron, which, buried in more than a billion dollars of debt, was forced to file Chapter 11 and sell most of its assets. In the course of one year, Enron went from one of the country's 20-largest companies and touted success stories to bankruptcy.

Thompson worked for four years as the U.S. Attorney for the Northern District of Georgia. From 1995 to 1999 Thompson served as independent counsel in a corruption probe at the Department of Housing and Urban Development.

He graduated cum laude in 1967 from Culver-Stockton College in Canton, MO. He received his master's degree in 1969 from Michigan State University and his law degree in 1974 from the University of Michigan.