FBI investigates army secretary's Enron dealings

David Teather in New York- The Guardian

Tuesday April 16, 2002

The US government was dragged back into the Enron scandal yesterday with reports that federal investigators are studying possible insider trading by army secretary Thomas White.

Federal Bureau of Investigation agents are said to be focusing on calls and contacts Mr White had with Enron executives in October, two months before the company collapsed. Mr White, a former vice chairman of the failed US energy firm, sold half of his shares during the month, netting more than $3m (£2m).

According to the reports, the FBI has interviewed friends and former colleagues of Mr White to find out whether he sought any information on Enron's financial position as it stumbled toward bankruptcy.

Mr White has told congressional investigators of 73 contacts with current or former Enron employees since he joined the Bush administration 10 months ago. The majority were between the August resignation of chief executive Jeffery Skilling and the December 3 bankruptcy filing.

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