Reed introduced Enron to Abramoff

Things are clearly not going well for religious right golden-boy Ralph Reed, as his campaign for lieutenant governor in Georgia continues to struggle. Most of the Georgia’s Republican state senators want him to quit, he’s hurting in the polls, and he’s offering money to people to show up at rallies on his behalf.

Obviously, Reed’s close personal and professional ties to disgraced lobbyist Jack Abramoff are destroying his career, but there’s only one thing that could make Reed’s story slightly worse: Enron.

We already know that Reed’s consulting firm racked up lucrative fees from Enron. Indeed, as MoJo reported over a year ago, Karl Rove “reportedly helped Reed land an Enron contract worth at least $300,000 to help build support for energy deregulation.”

But the Atlanta Journal-Constitution tied together both of Reed’s most glaring problems. Reed worked for Enron, and Reed lobbied with Abramoff, and now we know Reed also tried to bring Enron and Abramoff together. (thanks to reader J.C. for the tip)

One year before the energy firm went belly up, paid adviser Ralph Reed urged Enron officials to hire Abramoff, then a rising Washington lobbyist, as a “kitchen cabinet” consultant.

The e-mailed endorsement resulted in clubby lunches in which Abramoff and Enron reps, future icons of scandal in Washington and on Wall Street, sat across the table from each other.

It’s well-known that Reed worked for both Enron and Abramoff. That he helped them cross paths is not. The e-mail has never been published before.

On the campaign trail, Reed tells Georgians that he barely knew who Abramoff was, and they sort of worked together sparingly, which Reed now regrets. But the AJC report suggests otherwise.

In a 2000 email to Richard Shapiro, Enron’s top lobbyist, Reed said, “abramoff is arguably the most influential and effective gop lobbyist in congress. i share several clients with him and have yet to see him lose a battle. he also is very close to [then-House majority leader Tom] Delay and could help enormously on that front.”

It’s quite a motley crew, isn’t it? Reed, Abramoff, and Enron — a match made in…somewhere unpleasant.

please, now, lets not leave dear Mr. Rove out of this. His assistance in Reed getting the Enron gig is surely qualification enough to be part of any motley crew. It even flows well: “Reed, Rove, Abramoff, and Enron.” I think it has potential to be one of those classic phrases everyone knows as part of the culture. Like “you have the right to remain silent,” or “the jury finds the defendant guilty.” Or “Rethugs are Lying. Fucking. Bastards.”

  • Could Reed be connected to any more dirty crap? No Six Degrees of Separation for him. No he seems to like getting up close and personal. I’d feel sorry for him if I didn’t think he got what he deserves. Lie down with dogs, get up with fleas.

  • I’ve always wanted to kick the crap out of that smiling cherubic face. Now it turns out I don’t have to. His own history’s making him rot from the inside. Somewhere in his attic there must be a portrait turning unimaginably ugly. Wonder how long it’ll before Ralphie steps in front of a fast train or beer truck?

  • Zeitgeist reminds me of the old Three Stooges law firm of ‘Dewey, Cheatem and Howe’. The parallels to the Bush administration are truly astonishing, except there are a lot more stooges in Washington.

  • Curmudgeon, I hope Zeitgeist doesn’t personally remind you of Dewey Cheatem and Howe, as Zeitgeist happens to be a lawyer!

  • Ack!! No no no, I should have said “Zeitgeist’s comment in reference to a group of names that sounded like it could be a law firm…..”. No personal reference was intended and my evil twin Skippy will be severely punished for causing such unwarranted confusion. 🙂

  • Getting to the bottom of the Ernon debacle is tough. Enron had James A. Baker III and Robert Mossbacher on board as consultants since 1993. Ever read about their Enron compensation? Readers of the NYT and Andrew Sullivan know about Paul Krugman’s $50k consultant fee paid by Enron but how many know Weekly Standard in-house economist, Irwin Stelzer, was on the same panel with Krugman?

    I am disappointed that the Enron trial is so narrowly focused on those complex and difficult-to-understand off balance sheet entities.I am an accountant and if you look at Enron’s financials for the three years ended 12/31/2000, the gross profit percentage declined every year as revenues increased. Sure enough, revenues increased in 2001 and Enron was out of business.

    Enron financial statements are available at the SEC website in the Edgar databse. Search “Enron” and the parent company is Enron Corp/OR.

    Every financial analyst on Wall Street knew there was a problem at Enron before October 2001 without knowing about a thing about the Raptors. If Enron had not attacked California consumers in December 2000 after Bush was elected, Enron would have gone out before 9/11.

    I am curious about a $4 billion in customer deposits recorded as a liability on Enron’s 12/31/2000 balance sheet. There were no such deposits in the preceding quarter. Subsquently, the deposits were half that amount at 6/30/2001, the last 10-Q filed by Enron. Who deposited $4 billion with Enron in December 2000 is important because without the deposit, Enron would have showed negative cash and, thereby, alarming investors.

    Oddly enough, Enron filed a 424B3 registration statement in July 2001 which disclosed that $2 billion in zero coupon bonds issued and sold in February 2001 were to be offered for sale by the bondholders. What is odd is that the bondholders bought the bonds in February 2001 in the first place. Believe me, Goldman Sachs and Morgan Stanley knew Enron was in trouble in February 2001. Everybody in Houston high society knew.

    Secondly, I’d like to know where Salomon Smith Barney, Goldman Sachs. Toronto Dominion etc dumped the bonds in July 2001. Were unsuspecting pension plans or the ordinary investors duped?

    I speculated that Enron’s purchase of Media General’s New Jersey paper mill plant, Garden State Paper Mill, in July 2000 for $76 million in cash was a disguised political contribution to Bush’s campaign. General Medial owns newspapers and tv and radio stations in the southeast. Media General shed an underutilized, unprofitable subsidiary with a pension liability and pollution problems that later sold for $6 million and was ultimately shut down.

    I also suspect that Enron had someting to do with the creation of a huge Russian gas company now operating in the US, Itera. Check Alexander’s Gas and Oil website for stories about the Russian investigation into whether Itera was formed with assets stolen by Gazprom management. Price Waterhouse does not shine and should have been sued up the ying yang for negligence.

    I searched the WSJ archives for Enron stories and about the only place Enron never operated was Russia. In the early ’90s, there was one story about Enron entering into some kind of joint agreement with a Russian company but the deal apparently came to nought.

    Most people don’t know that Goldman Sachs owned 20% of Enron at one point and that Jon Corzine was the chairman of Goldman Sachs in the ’90s. Corzine has always refused to disclose his financial holdings.

    Itera, based in Jacksonville, recently bought a Texas energy company, Dune Energy, and opened some kind of gas transmission facility in southeast Illinois. I’ve been meaning to check if the Illinois facility is in Hastert’s district and try to find out who sold Dune Energy to Itera but one only has so much time!

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