Broad and Growing Coalition Urges SEC To Side With Enron Victims

SEC Chairman Cox Testifies before US Senate about Enron case as Senator Edwards, New York Times Editorial Board Press SEC

May 17, 2007

Chairman Cox Testifies About Enron: Despite the growing pressure, when asked at a Senate hearing yesterday, Chairman Cox remained noncommittal about the SEC's position in the Enron case, saying, "I expect that the net result of all that will be that the United States government will do its level best to make sure that injured Enron investors receive the full amount of coverage to which they're entitled by the legal system." (Dow Jones Newswires)

John Edwards Joins Growing Movement: In a statement released yesterday, Sen. Edwards said, "I urge the S.E.C. to fulfill its historic mission of protecting investors. Silence, or even worse, siding with fraud participants, would be a betrayal of that mission. The question for all Americans is whether their government will stand on the side of those big banks or regular families."

New York Times Urges SEC and Supreme Court to Hear Case: In a Sunday editorial, The New York Times said that "the Securities and Exchange Commission should ask the solicitor general to file a brief in support of the Enron shareholders' arguments. A fair reading of the law suggests that they should win." ("Holding Accomplices Accountable" The New York Times)

Enron Victims in Washington: Last week, a broad coalition of consumer and labor leaders joined Enron victims at a press conference in Washington to urge the SEC to stand up for the victims of fraud. ("SEC is Urged To Pursue Banks In Enron Fraud" The Washington Post)

After the press conference, Chairman Cox agreed to meet with the victims of the Enron fraud orchestrated by the Wall Street banks. In a follow-up letter to Chairman Cox, the individuals pledged to return to Washington to publicly comment on the SEC's ultimate decision:

"We sincerely appreciate your willingness to meet with us last week and listen to our stories of how our lives were affected by the Wall Street banks that orchestrated the Enron fraud.

"We hope you will take our experiences to heart and grant our request to support all investors, taxpayers and victims of corporate fraud by immediately reaffirming the SEC's longstanding support for the existence of scheme liability.

"We will return to Washington on or before June 12th, the day after briefs are due to the Supreme Court, to publicly comment on the SEC's ultimate decision. At that time, we hope you will be standing by our side, urging the Supreme Court to allow us to have our day in court."