ENRON'S Richard A. Causey
Richard A. Causey, chief accounting officer: Sold 197,485 shares for $13.3 million.
RICHARD A. CAUSEY
Executive Vice President and Chief Accounting Officer
Richard A. Causey is executive vice president and chief accounting officer of Enron. Previously, Mr. Causey was a managing director of Enron Capital & Trade Resources (ECT) with responsibility for the development of ECT's core retail energy products. Other areas of responsibility at ECT included accounting and risk management operations, as well as the leadership of treasury activities (capital markets, portfolio management and transaction evaluation). Mr. Causey is also a member of Enron's Management Committee.
Before joining Enron, Mr. Causey was a senior manager with Arthur Anderson & Co. in Houston where he specialized in the natural gas industry. While at Arthur Anderson, he had primary responsibility for the Enron engagement as well as other natural gas pipeline and marketing clients.
Mr. Causey holds a bachelor's degree in business honors and accounting from the University of Texas at Austin. He is also a C.P.A. in the State of Texas. He is involved in various charitable and civic activities in Houston including serving as member of the Board of Directors of the American Heart Association and the Brenda & John H. Duncan Rise School of Houston. Mr. Causey is a member of the College of Business Administration Foundation Advisory Council at the University of Texas. Additionally, Mr. Causey is a member of the Accounting Advisory Council at the University of Texas where he served as the chairman in 1995-96.
Arthur Andersen & Vinson & Elkins:
Bush Is Indebted To Enrons
Professional Abettors, Too
Although Enron is George W. Bushs No. 1 career donor, the president also is heavily indebted to the professional firms that aided and abetted the greatest bankruptcy and shareholder meltdown in U.S. history.
Enrons "independent" auditor and "outside" law firmwhose own questionable actions in the Enron debacle are being probedgave a total of $560,385 to Bushs gubernatorial and presidential campaigns. In addition, Arthur Andersen and Vinson & Elkins accounted for four of Bushs elite Pioneer fundraisers who collectively moved at least $400,000 more to Bushs presidential campaign (Enron Chair Ken Lay is another Pioneer).
Enron Abettors Give $560,385 To Bush Enron Accomplice Gubernatorial
Vinson & Elkins
Arthur Andersenwhich is making headlines for aggressively shredding documents related to its lame audits of Enrons cooked booksput Bush Pioneer D. Stephen Goddard, Jr. on leave January 15 for his role in the Enron audit. In addition to the $100,000 or more in Bush presidential money that this Pioneer raised from friends and family, Goddard contributed $3,250 of his own money to Bushs gubernatorial and presidential campaigns.
Gary B. Goolsby, another accountant who gave $3,000 to Bushs gubernatorial campaigns, is one of four Arthur Andersen partners who have been relieved of "management responsibilities."
Bushs presidential campaign received $1,000 from Enron Chief Accounting Officer Richard A. Causey, whose job put him in the thick of the Enron scandal. Enron recruited Causey from Arthur Andersen, where he had primary responsibility for the firms second largest account: Enron.
Bushs presidential bid also received $500 from Arthur Andersen CEO Joseph Berardino, whom the firm promoted last year after he helped defeat a proposal to make audits more independent. Then-SEC Chair Arthur Levitt wanted to stop auditors from charging one client for both auditing and consulting.
With audits accounting for less than half of the $52 million that Arthur Andersen billed to Enron in 2000, Enron is a cautionary tale. Critics say that accountants who pocket big consulting fees are less likely to question cooked books. In helping to stop the Leavitt reform, Berardino claimed that consulting prevents fraud by helping auditors to better know their clients business.
Arthur Andersen joined the other Big Five accounting firms in pushing a 1995 law that lowers the legal risks that accountants face for signing off on phony books. Having signed off on some of the biggest stretchers of recent history (Sunbeam and Waste Management), Arthur Andersen is a prime beneficiary of the Private Securities Litigation Reform Act.1
The accounting profession has contributed more than $1.3 million to the gubernatorial and presidential campaigns of George W. Bush, who has made pro-business "tort reform" a centerpiece of his governing agenda.
Texas accountants tried to pass a state law to shield their liability in state courts under Bush in 1999. A House Committee let this bill die, however, after a hearing in which the accountants had no numbers to quantify their claim that they were the victims of "runaway lawsuits." Leading this hustle was the Texas Society of Certified Public Accountants. The latest, year-end issue of its trade magazine features a cover story on Enron that says, "Many consider Enrons CPAs accounting leaders, and rightly so."
Enron's Abettors Produce Four Bush 'Pioneers' Enron-Linked
Occupation Noteworthy D. Stephen Goddard, Jr. AA Houston Ofc. Mng. Partner Put on leave after Enron shredding scandal Joe B. Allen, III V&E Lobbyist Treasurer of V&E's powerful PAC Thomas P. Marinis, Jr. V&E Attorney Tax & election law specialist; GWB's boyhood pal Robert H. Whilden, Jr. BMC Software Gen'l Counsel Led V&E's corporate securities section until '99
Enrons outside legal counsel contributed $335,850 to Bushs gubernatorial and presidential campaigns. Vinson & Elkinswhich has an emerging role in the Enron scandalis the only company that produced three of Bushs elite fundraising "Pioneers" (see table).
When Enron Vice President Sherron Watkins warned Chair Ken Lay about Enrons cooked books in August 2001, she urged him to bypass V&E in his probe. Watkins believed that V&E was too conflicted because its attorneys helped set up some of the controversial partnerships that En-ron used to hide mountains of debt.
Consulting with Enron General Counsel James Derrick, Jr. (formerly of V&E), however, Lay asked V&E to investigate Watkins claimswithout second-guessing Arthur Andersens audit. V&E, which billed Enron $455 million last year, concluded on October 15th that Enrons controversial use of partnerships was "creative and ag-gressive" but "no one has reason to believe that it is inappropriate from a technical standpoint." V&E said that the main liabilities of Enrons controversial partnerships were those that dog Enron today: bad press and investor lawsuits.
Bush Donors Who Are Players in the Enron Scandal Contributor Occupation GWB Money D. Stephen Goddard Jr. Arthur Andersen Houston Mng. Partner
Gary B. Goolsby Arthur Andersen Partner
Richard A. Causey Enron Chief Accounting Officer
Joseph F. Berardino Arthur Andersen CEO/Mng. Partner
Money Notes: The money attributed to Arthur Andersen and Vinson & Elkins came from these firms PACs and employees. Federal presidential money just includes hard money, as tracked by the Center for Responsive Politics and Center for Public Integrity. The state money also is hard money given to Bushs 1994 and 1998 gubernatorial campaigns. In both cases, Arthur Andersen money includes Ander-sen Consulting contributions made before that company became independent in August 2000.
Lobby Watch http://www.tpj.org/Lobby_Watch/andersen.html
(The University of Texas at Austin)
Mr. Richard A. Causey
Senior Vice President
[PDF] Accounting Times- (University of Texas-Austin)
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... FASB Chairman (January, 1987 June, 1997) 11/1 "Global Equity Markets," Mr. Richard
A. Causey, CPA (UT '82); Senior VP & Chief Accounting/Information Officer ...
Andersen men at Enron to be quizzed
By Philip Smith [04-01-2002]
US Congress is to probe the role of two senior financial executives at Enron who had previously worked for embattled auditor Andersen.
As the storm continued over the collapse of the energy giant, it emerged that Richard Causey, Enron's chief accounting officer, and Jeffrey McMahon, chief financial officer, had both worked for Andersen in Houston, the office responsible for Enron's audit.
Both executives are now expected to be quizzed by congressional investigators about their role in the collapse.
The revelation will further fuel the row over Andersen's role at Enron, which last year paid the big five firm $27m in non-audit fees on top of $25m for its audit work.
As a senior manager at Andersen, Causey had primary responsibility for the firm's work at Enron.
Although it is not unusual for auditors to be recruited by their clients, the news will raise further questions about Andersen's objectivity.
Joe Berardino, Andersen's US chief, has already admitted his firm made 'errors of judgement' in its work at Enron.