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Shelby Guilty Plea 'Ends Enron'

Bruce Carton | November 23, 2010

Yesterday, Rex Shelby, a former Enron Broadband Services executive, pleaded guilty to one count of insider trading. According to Shelby's lawyer, Ed Tomko, “[t]his ends Enron, because Rex was the very last Enron defendant standing from prosecutions that resulted from the company’s bankruptcy.”

Bloomberg reports that prosecutors agreed to drop the remaining conspiracy, securities fraud and other insider trading charges against Shelby in exchange for his plea. Shelby may serve up to six months in a halfway house, plus six months’ house arrest. He also agreed to forfeit about $2.5 million.

In 2003, Shelby and six other ex-Enron Broadband executives were charged with misleading investors about Enron Broadband's prospects. Bloomberg reports that prosecutors alleged that while the defendants told analysts and...

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