The U.S. Securities and Exchange Commission announced Wednesday that a Houston court has entered a final judgment against a former Merrill Lynch investment banker over allegations that he helped Enron manipulate earnings.

The SEC reports that the U.S. District Court in Houston entered a final judgment in the commission’s civil action against Robert Furst, a former investment banker at Merrill Lynch & Co., Inc. who was in charge of the firm’s banking relationship with Enron Corp. The case involves alleged “sham” transactions between the firms designed to boost Enron’s reported income.

On March 17, 2003, the commission charged Furst and three other former executives of Merrill Lynch with aiding and abetting Enron’s earnings manipulation. That action remains stayed against two of Furst’s co-defendants, and the commission settled all of its charges with the other co-defendant. It has also settled all of its Enron-related charges against Merrill Lynch.

Now, without admitting or denying the allegations in the commission’s complaint, Furst has been permanently enjoined from violating the antifraud provisions, as well as from aiding and abetting violations of the periodic reporting, books-and-records, and internal controls provisions; barred from serving as an officer or director of a public company for five years; and ordered to pay US$300,001 in disgorgement and civil money penalties.

IE