Apparently the prominent law firm knew a bit more than it let on about the dealings of its client, America's most famous former energy trading firm:

Another act in Enron show - Filing in massive shareholder suit to take aim at Vinson & Elkins

By TOM FOWLER
June 13, 2006
Houston Chronicle

Just in time for the intermission between last month's convictions and next September's sentencing in the main Enron criminal trial, plaintiffs' attorneys in a massive shareholder lawsuit are preparing a big show of their own. The likely star? Vinson & Elkins, the Houston law firm that was Enron's main outside counsel in the company's final days.

A filing expected in federal court as early as today will contain numerous documents aimed at supporting claims that V&E knew much more about troubles at the company than it has let on and should be liable for some of the billions of dollars in shareholder losses...

...Among the papers are voice mail message transcripts showing that as early as 1999, V&E attorneys questioned the propriety of Enron's former chief financial officer doing business with the company through a side partnership. Also included are notes made by the current head of the firm expressing concerns that legal opinions the firm provided didn't really satisfy accounting rules for millions of dollars in deals...

More here, at The Chronicle. And when will Tom Kirkendall of Houston's Clear Thinkers chime in on this one? I eagerly await his thoughts.

-- MDT

Labels: Enron, Houston's Clear Thinkers