The first trial of former Enron executives concerned six people accused in a Nigerian barge deal from 1999. Here are a few basic questions and answers about this case:

Q.What was the accusation here?

A. Prosecutors said conspiracy, fraud and lying under oath at Enron and Merrill Lynch, a Wall Street firm that was courting Enron business in 1999. The government charged that Enron cooked up a sham sale to Merrill Lynch of three electricity-generating barges off the coast of Nigeria. Prosecutors said the idea was to make it look like Enron made a wad a cash on the deal, deceiving Enron shareholders but getting bonuses for themselves for meeting profit goals.

The problem, prosecutors said, was Enron's unwritten promise to buy the barges back at a profit to Merrill Lynch within six months. That meant that when Enron reported the sale to fatten its bottom line, it was fraud. If Merrill wasn't risking any of its own money when it took over the barges, then it wasn't really buying them. It was just lending Enron money.

Q.What was the defense?

A. All six defendants said they were innocent. Among their defenses:

Q.Who was on trial?

A. Six people, none with household names.

From Enron:

  • Dan Boyle, Clear Lake resident. Enron's point person in the barge deal, accused of setting up the arrangement. He was found guilty of conspiracy, wire fraud and lying to investigators.
  • Sheila Kahanek, University of Houston accounting grad. Accused of reprimanding employee for putting in writing the secret guarantee to Merrill Lynch. She was acquitted of all charges.

From Merill Lynch:

  • Daniel Bayly. Accused of taking part in a conference call with Enron execs to pin down a locked-in profit on the deal. He was found guilty of conspiracy and wire fraud.
  • James A. Brown. Accused of denying he knew about any secret guarantee despite an e-mail suggesting otherwise. He was found guilty of conspiracy, wire fraud and lying to investigators.
  • William Fuhs. Accused of helping to close the deal, then lying to the FBI about it. He was found guilty of conspiracy and wire fraud. Yet to stand trial on the charges involving lying.
  • Robert Furst. Accused of having a summary of the proposal drawn up and later having a letter written demanding that Enron pay up. He was found guilty of conspiracy and wire fraud.

Q.How much money was at stake?

A. A pittance in the world of Enron and Merrill Lynch: $12 million for the sale and a $530,000 profit for Merrill Lynch six months later. Prosecutors calculate, however, that the deception cost Enron shareholders $43.8 million.

Q.No top officials involved. Small change for Enron. Why did this matter?

A. This case was a small, digestible example of the same kind of allegations prosecutors are making in all the other Enron cases. It boils down to accusing Enron executives not just of stealing from the cookie jar but also of misleading the public about how much it really had in its cookie jar. If a jury didn't care about this, it might not care about the bigger cases to come, including the case of ex-CEO Jeff Skilling, who's also accused in the barge deal.

Although the government's Enron Task Force got Arthur Andersen convicted of obstruction of justice and has obtained a growing number guilty pleas from individuals, prosecutors' performance here could determine how they handle other pending cases and any others they might yet pursue.

Q.Where were Enron's bigwigs in this trial?

A. Ex-Chief Financial Officer Andrew Fastow, who pleaded guilty to two conspiracy charges and is cooperating with the government, is central to the barge deal but was not put on the stand. It's thought prosecutors are holding him in reserve for Skilling's trial.

Former Enron President and Chief Operating Officer Jeff MacMahon has not been charged with any crimes in the Enron scandal, but his name came up during the barge trial. Witnesses testified he made illicit oral promises to Merrill Lynch bankers that he'd get them out of the barge deal within six months at a guaranteed profit.

The indictment of former Enron Chairman Ken Lay does not drag in the barge deal.

Prosecutors called two other well-known Enron figures who have pleaded guilty to crimes:

  • Ben Glisan Jr., a former Enron treasurer, serving a five-year prison term for conspiracy. He testified that Enron rewarded those who engaged in systematic deception.
  • Michael Kopper, a former Enron finance executive who worked as Fastow's top aide, who pleaded guilty to fraud and money laundering charges in 2002 and is cooperating with the government. He admitted he thought part of his job was to think up schemes to steal from shareholders.