The former CEO of Enron Broadband Services, Kenneth Rice, has testified that Jeffrey Skilling wanted him to mislead Enron’s board of directors. At a meeting between Rice and Skilling (former head of Enron) in May 2001, Skilling suggested that Rice should compile a presentation that was in line with analysts’ expectations. Analysts expected Enron Broadband Services to perform well long-term, but Rice says that the business unit was actually spending $100 million per quarter and producing little business.
Rice is one of 16 executives affiliated with Enron who have pleaded guilty to crimes related to Enron’s collapse. Rice pleaded guilty in July 2004 to securities fraud, and parted with $13.7 million in cash and property. That property included a Ferrari and a Colorado vacation home. He also agreed to help prosecutors with cases related to Enron. His net worth has dropped from $25 million to $10 million since pleading guilty, and he is awaiting sentencing.