Enron's Law Firm Is in the Crosshairs
Vinson & Elkins' heavy reliance on the work it did for the energy giant is now a potential liability for the law firm
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Aftershocks from the collapse of Enron (ENE ) have rocked the energy giant's auditors, bankers -- and now its attorneys. Houston law firm Vinson & Elkins was the latest to be hit when news broke that it had shrugged off allegations of accounting fraud by whistle-blower Sherron S. Watkins.
That's an incendiary revelation, for certain. But it may not pose nearly as much of a threat to V&E as some of the other work the firm may have done for Enron -- namely, helping to construct the web of partnerships the company used to move debt off the balance sheet and providing advice on what executives should disclose to the Securities & Exchange Commission.