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Vinson

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Vinsons & Elkins Enron was Houston law firm Vinson & Elkins’ top client, accounting for about 7 percent of its $450 million revenue. Vinsons & Elkins seems to have dismissed Sherron Watkins’s allegation of accounting fraud after making some inquiries, but this does not appear to leave it open or criminal liability. Of greater concern are allegations that Vinsons & Elkins help structure some of Enron’s special-purpose partnerships. Watkins in her letter to CEO Ken Lay, indicated that the law firm had written opinion letters supporting the legality of the details. In fact, Enron could not have done many of the transactions without such opinion letters.
Merrill Lynch The brokerage and investment banking firm Merrill Lynch, which was in the news for its high-profile collapse and subsequent acquisition by Bank of America in 2008, also faced scrutiny by federal prosecutors and the SEC for its role in Enron’s 1999 sale of Nigerian barges. The sales allowed Enron improperly record about $12 million in earnings and thereby meet its earnings goals at the end of 1999. Fastow gave his word that Enron would buy Merrill Lynch’s investment out in six months with a 15 percent guaranteed rate of return. Merrill Lynch went ahead with the deal despite an internal. Merrill Lynch document that suggested that the transactions might be construed as aiding, and abetting Enron’s fraudulent manipulation of its income statement. Merrill Lynch denies their transaction was a sham and said that it never knowingly helped Enron to falsify its financial report.

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