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Enron4l

From: Wells, Tori L. on behalf of Lay, Kenneth
Sent: Wednesday, October 24, 2001 8:11 AM
To: Power, Bobbie
Subject: FW: Financial Disclosure of $1.2 Billion Equity Adjustment

-Original Message--
From: Schwieger, Jim
Sent: Friday, October 19, 2001 1:03 PM
To: Lay, Kenneth; Boardroom
Subject: Financial Disclosure of $1.2 Billion Equity Adjustment

For the first time in 22 years of service for Enron I'm ashamed to admit that I work for Enron! I have lost all respect for
Enron Senior Management and agree with the Financial Analyst when they say that Enron Senior Management can not be
trusted. Ethics and Morals are either something everyone else needs to have except Senior Management or somewhere
along the way Senior Management started believing the end justifies the means. The communication the Employee's have
received over the last few years about values such as Respect, Integrity, Communication and excellence must be
propaganda intended to get Employee's to believe Senior Management really supported these values so that no one would
really notice that their actions represented something just the opposite.

I can not believe that Senior Management lacks the understanding of human nature to totally ignore the fact that if
someone does not trust what you have said in the past you should not try and conceal pertinent information in the future.
Then to allow an Enron Spokesperson to speak for Enron with the statement "It's just a balance-sheet issue" implies to
me that this individual does not know what a Balance Sheet or Income Statement is and certainly should not be speaking
to the public. If you are going to play the game of lying, cheating and stealing at least be intelligent enough to present a
plausible story. To use phrases such as it was a hedge against fluctuating values in some of Enron's broadband
telecommunications and other technology investments is a complete insult to my intelligence and to the definition of the
word "HEDGE". A hedge by definition implies that the upside and downside exposure has been limited. It frightens me
that we are out asking customers to let Enron help them "HEDGE" their risk when I'm not sure Enron's Senior
Management understands what a hedge means?

_Cm-.also_confused-as-to-the personal-financial-involvement-of-Andy-Fastow in tfie inves-fment vehicle that generated this
write down. I must be confused in that as a Trader Enron has asked me to sign documents declaring that I will not have
any personal financial involvement in anything involving the Natural Gas Business. This must be an example of as my
father used to say " do as I say not as I do"? I guess we need to have audits performed of Senior Managements financial
interest to insure their actions are as good as their word?

The fact that Senior Management and the ENE Board of Directors knew these transactions were being used to manipulate
earnings and the stock price and took advantage of that knowledge to sell their ENE stock options in my opinion is
"CRIMINAL". It provides me no comfort to know that the biggest perpetrators of this fraud have left Enron in recent
months. These individuals have stolen billions of dollars from ENE stockholders and Employees and need to pay the price
for such fraudulent activity. They are set for life,. having all the money they could ever need, while Employees and
Stockholders have lost their life savings. You have completely failed at the job you were hired to perform. If this type of
activity would have occurred farther down the organization no one would hesitate to fire the individuals involved and to
institute criminal charges.

I for one can not wait until the All Employee meeting next week. I do not think anyone wants to hear about third quarter
results because how could we trust what is said anyway. Instead I feel you owe the ENE Employee's a thorough
explanation of how you failed to perform your responsibilities, what actions are going to be taken and most of all apologize
for the job performance to date.

rori Wells 11/01 Outlook

EXH012-03098

GOVERNMENT
EXHIBIT
  2592
  Crim. No. H-04-25 (S-2)