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December 15, 2006
FORMER ENRON EXECUTIVE PLEADS GUILTY IN $3 MILLION WIRE FRAUD SCHEME
HOUSTON, Texas – Christian Deeb Rahaim, 38, of Mandeville, La., and formerly a Senior Director of Benefits in Enron’s Human Resources Department, has been convicted of wire fraud arising from a scheme he devised to defraud Enron of approximately $3 million, U.S. Attorney Don DeGabrielle announced today.
Rahaim pleaded guilty today before U.S. District Judge David Hittner, and is scheduled to be sentenced on March 26, 2007. He faces a maximum of twenty years imprisonment and a fine of $250,000 or twice the amount of the loss to Enron at his sentencing hearing.
During today’s hearing Rahaim admitted that in June 2005 he devised a scheme in which he presented a fraudulent bill for consultation services in the amount of $1,162,000 to Enron which called for payment to be made to a Canadian mail-drop, which unbeknown to Enron Rahaim controlled. Rahaim disbursed and transferred the $1.16 million between and among various accounts throughout the United States under his control and used the funds to pay personal credit card debt, to open personal investment accounts, and to buy a half-million-dollar home in Cypress, Texas.
Enron discovered the scheme in November 2005 when employees of Bank One raised questions about Rahaim’s attempt to transfer another $1.8 million that Enron had recently wired to that bank. When an investigation of the circumstances of $1.8 million funds transfer revealed that it was based upon a second bogus invoice, Enron terminated Rahaim’s employment.
The United States has seized and forfeited the $500,000 residence in Cypress, Texas and all funds remaining in the investment accounts funded with the $1.162 million that Rahaim stole in June 2005. The $1.8 million unauthorized wire transfer was also recovered.
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