Smug Pug: Stealing Enron

by Catherine Austin Fitts

June 18, 2002



The Rich are not getting richer. The rich are stealing. And the people doing  the stealing for them have names and addresses.

                                                                -- Adaptation of a quote from Utah Phillips


From Part I of the Smug Pug Series:


“Every trucker and teacher in my West Tennessee home of Hickory Valley knows that Mr. Winokur's whining is yah-yah. We are paying $150,000 a year to our Congressman and two Senators to help Mr. Winokur and his pals steal from us. Congress is stalling for time. While Mr. Winokur and his pals dish out "yah-yah," their colleagues shred documents, transfer assets and stolen cash gets tucked away.”

For the questions sent to Mr. Hebert S. (“Pug”) Winokur, Jr. after his first Congressional testimony regarding Enron on February 8, 2002, see:

Mr. Winokur has not responded yet to these questions.


Smug Pug The Cancer Man


On May 7th, 2002, Herbert S. Winokur, Jr., Chairman of the Enron Finance Committee, testified before the Senate Committee on Governmental Affairs in a hearing titled “The Role of the Board of Directors in Enron’s Collapse.” Mr. Winokur’s comments and opening statement covered the board’s role, off shore partnerships, his role in the special board committee, the Powers Committee, as well as Enron’s illegal trading activities in the California energy markets.

The May 7th testimony was interesting in terms of linkages between the “privatization” efforts of Enron in California that showed remarkable similarities with other “privatization and deregulation” activities of Enron and other companies of which Mr. Winokur and his partners are investors or board members.


While listening to Mr. Winokur “yah-yah” his way through his second round of Congressional testimony, it seemed like a good time for another round of questions. Congress asked softball questions designed to help Mr. Winokur persuade the TV audience that he was the victim. That is quite a show given that Mr. Winokur as the Chairman of the Finance Committee was the man responsible for the mess and is legally liable for gross negligence at best and intentional fraud (and more) at worst.


Ordinary men and women and the members of the free press can hold Mr. Winokur and our Congressional representatives feet to the fire. The first round of questions got the ball rolling. Here is the next round to help us continue to exercise our powers and responsibilities.


After many years of cleaning up Iran Contra fraud, both as an Assistant Secretary in the Bush Administration, and as an investment banker with my own highly successful company, I developed a different way of looking at BCCI money laundering, the S&L crisis and various HUD scandals. If you looked at “how the money worked” by place, a group of folks in Houston and their international investment syndicate got together with the NY Fed banks, the Wall Street firms and some of the various government contractors and intelligence and enforcement agencies that run the government and simply stole about $500 billion.


During that period those who listened to Congressional testimony, heard Senators and Congressman yelling and screaming and sounding like something was really getting done. Of course, the only thing getting done was bad guys writing lots of checks for campaign contributions because, indeed, they got to keep all the cash. The more our Congressional representatives made noise, the more checks were written, and no efforts were made to get our money back. Watching the Congressional testimony on Enron brings back Yogi Berra, “It’s déjà vu all over again.”


It helps to compare high stakes financial fraud to baseball. The key to winning is to keep your eyes on the ball. The ball in high stakes financial fraud is cash. The winner is the guy who ends up with the cash. Forget about doing anything to “make sure it can not happen again.” If the criminals get to keep the cash this time, it will happen again. When crime pays, the criminals play. That includes buying up our media, our Congress, our banks, our land, our mortgages, our credit card receivables and our companies.


All financial fraud investigation and enforcement actions organize around two fundamental principles:


- assert control of the data and documentation about how the money works; and


- use that control to then assert control of the money and assets.

In the case of Enron, the Department of Justice and federal investigators have a perfect record. They have failed to take any one of the seven steps which are the basis of an effective investigation and enforcement effort . One is reminded of the wise suggestion of Colonel Fletcher Prouty, an expert at the type of covert operations that may be involved in Enron’s financial fraud, “Ask yourself the question --- who stood down?”

DOJ’s Seven Deadly Enron Sins

1. DOJ failed to assert control of documentation and records of Enron’s on shore and off shore subsidiaries and affiliates as well as Enron’s banks, trading partners, auditors and other vendors that would give them a complete picture of how the money worked at Enron and how to get stolen or laundered or slush fund monies back;


2. DOJ failed to assert control of documentation and records and cash before the transfer and sale of assets;


3. DOJ failed to assert control of documentation and records and cash before bankruptcy;


4. DOJ failed to prevent shredding;


5. DOJ failed to assert control of company cash and assets both onshore and offshore and related entities;


6. DOJ failed to assert control of personal cash and insider trading profits and capital gains;


7. DOJ failed to arrange for the cancellation of Enron and Arthur Anderson’s government contracts and assert control of government payables.


This is not an accident. Although we are paying the salaries, health care, bonuses, travel, expense accounts and pension funds of the attorneys at the Department of Justice, at the White House as well as our Congressional representatives, they are essentially doing everything possible to help the bad guys get away with the cash. Pug is a lead investor and board member of DynCorp, a government contractor paid to provide support to DOJ and SEC enforcement. It adds insult to injury that ordinary people --- whether as taxpayers or pension fund beneficiaries --- are paying not just for the crime but the cover up as well.


I have personal experience with DOJ doing or asserting their right to take all of seven steps when their own auditors and investigators have documented that the parties in question (me and my company) were entirely innocent.[1] Since Enron’s board, management and auditors have confirmed that they are guilty of criminal violations (obstruction of justice, gross negligence and falsification of information subject to securities laws, among others), there is no problem asserting the same powers in Enron’s case that DOJ is free to use to assert control over the documents and cash of innocent companies and their innocent employees and shareholders.


I hear a lot of people these days say, “well, if it’s this bad, then things are hopeless, there is nothing I can do.” Ah, fear not, there is. Let’s look at one example on the Enron affair.


Harvard Watch, a group of students and interested members of the Harvard community produced a report called “Trading Truth: Harvard’s Enron Entanglements”[2] that was published on the Internet. Harvard Watch describes Harvard’s intellectual support for Enron’s below market privatizations and above market deregulation.


The report raises sufficient questions to merit a serious investigation as to whether Harvard Management personnel and/or one of the funds that manages money for Harvard, Highfields Capital, engaged in insider trading or were complicit in a "pump and dump" fraud scheme in connection with Enron securities and offshore partnerships. Highfields was established by a Harvard Management employee and is reported in Harvard’s tax return to be its largest vendor, paid approximately $30MM in one year. Enron's former CEO, Jeff Skilling, is a former partner of Ron Daniels, Harvard's Treasurer who manages Harvard Management. Pug Winokur was a member of the Harvard Corporation while serving as Enron’s Finance Chairman and has intimate dealings with Harvard Endowment though the investment activities of Pug’s company, Capricorn Holdings that co-invests with Harvard. Whether or not Harvard Endowment is an investor in any of Capricorn’s investment partnerships is a question that cries out for some sunshine.


Harvard Watch’s report illuminated Pug Winokur “yah-yah” in a most gracious and complete way. Subsequently, Winokur “resigned” from the Harvard Corporation. Harvard’s President Summers is also implicated in Enron fraud as well as $3.3 trillion of missing money and gold manipulations at the US Treasury and questionable “privatisations” in Russia and elsewhere. Not surprisingly Summers said goodbye to Winokur through the press in a manner that was cool to say the least.[3] Syndicate players like Harvard Endowment need quiet frauds that do not threaten their tax exemption or their “brand”. Their need for quiet is an opportunity to use illumination to get our money back. Harvard Watch has demonstrated what one small group of volunteers can do. Imagine the cumulative effect of many such groups?


We are in an election year. We have an unprecedented opportunity to insist that our elected officials get our money back. Under the governing laws, including money laundering, fraud and RICO statutes, that money belongs to consumers in places like California and India, various pension beneficiaries and the taxpayers before it belongs to Pug and his pals. Indeed, Pug, Ken and Linda, and Jeff and Andy would do well to spend a few years cleaning Super 8 motels to earn a living. They would come to appreciate what it is like to pay taxes (more than Enron did) and support a family while your taxpayer resources are used to fund private companies steal your assets at ten cents on the dollar and dramatically increasing your energy costs .


The Enron theft may include some $3.3 trillion missing from the Department of Defense (DOD) and Department of Housing and Urban Development (HUD).[4] If my hypothesis is right ---that monies stolen from HUD were laundered through Enron --- then we need to get that money back as well. This amount of money is $11,700 for each American resident --- many of whom do not have this amount of money in their bank account, let alone any assets to fall back on in the times ahead.


In the summer of 2000, I went to visit the office of the Chairman of the subcommittee of Senate Appropriations with jurisdiction for HUD, Senator Kit Bond (R-Mo.). The staffer that I spoke to asked me what was going on at HUD. I deferred to the staffer. They said, “HUD is being run as a criminal enterprise.” For that to be true, the Department of the Treasury, DOJ, Lockheed Martin, DynCorp, JP-Morgan Chase, Harvard, Arthur Anderson, AMS and several other HUD contractors would have to be complicit in running HUD and its financial and securities operations, FHA and Ginnie Mae with a trillion dollars of mortgage credit and related mortgage securities, as a criminal enterprise.


Subsequent to my conversation with Senate staff, the Chairman, his subcommittees and the full Congress, including my Congressional delegation, all voted a $1.7 billion increase for HUD appropriations. Interestingly enough, most of the companies involved at HUD are involved at Enron. In addition, the agencies that control HUD, the Department of Treasury and DOJ, are covering Enron up. Could this be a coincidence? With $3.3 trillion unexplained and undocumented adjustments to books “cooked” worse than Enron, this is a financial crisis that rises to the level of national security problem.


In the game of financial fraud, the ball is cash. We need to keep our eyes on the ball. The time has come to get our money back ---- not to just to act, but to TRANSACT. For those looking for transactions that you may be able to take comfortably in the normal course of your daily life, I have added a list after the questions for Mr. Winokur to help you get started. These are ideas to help you “do your bit” because together lots of us doing our bit can get our money back.

A penny saved is a penny earned. Mr. Winokur’s yah-yah may not add up, but our actions and transactions will. DV














Herbert S. (“Pug”) Winokur
Chairman, Enron Finance Committee,
Chairman, DynCorp Compensation Committee
Former Member, Harvard Corporation
Former Member, Harvard Management
Capricorn Holdings
30 East Elm Street
Greenwich, Connecticut 06830
By: E-Mail:

Dear Pug:

I have posted the following questions to the Solari Action Network as a suggested follow up to your latest Congressional testimony of May 7, 2002.


I would welcome the opportunity to circulate your reply.


We have not received your response to our first set of questions, regarding your Congressional testimony in February. We would encourage you to also respond to those and will circulate them as well.



Catherine Austin Fitts



California Electricity


In response to questions by Senator Lieberman (D-Conn.), you stated that you were not aware of Enron’s illegal trading activities designed to inflate California energy prices and exacerbate the California energy crisis:


- As Chairman of the Enron Finance Committee are you responsible to understand large increases in material amounts of revenues? Do you typically go for months at a time without understanding the economics of the companies on whose boards you serve?


- You have a PHD in mathematics from Harvard University with a specialization in complex systems. Do you consider Enron’s illegal trading activities to be beyond your intellectual capacity?


The Harvard Watch report outlines the use of Harvard's academic talent at Harvard Business School and Harvard's Kennedy School to justify federal and state energy de-regulation and privatization policies. The report describes intellectual air cover for the transfers of public assets and resources at below market prices to private investors, which included Harvard Endowment and its investment network. [5]


- Harvard’s Endowment grew from $4 billion to $19 billion from 1992 to 2000. What is the relationship between Harvard’s remarkable investment performance and global “privatizations” of public assets at below market prices and “deregulation” of essential services at above market prices justified by Harvard academic and intellectual resources?


Connecticut Residence


Your business and personal residence are in the State of Connecticut.


- Do you believe that status as a wealthy and powerful citizen of Connecticut had anything to do with Connecticut Senator Lieberman’s being satisfied with your insinuation that Enron’s California trading activities were too complicated for you to understand and that your failure to provide adequate oversight did not constitute “negligence.”


Board Accountability


In your written statement, you stated:


“What happened at Enron has been described as a systemic failure. I see it instead as a cautionary reminder of the limits of a director’s role. We served as directors of what was a large and complex corporation. A director’s role, by its nature is a part–time job. It also was necessarily defined by the nature of Enron’s enterprise – which was worldwide in scope, employed more than 20,000 people and engaged in a vast array of trading and global development activities. By force of necessity, we could not know personally all the employees. As we now know, key managers, whom we believed to be critical components of an effective oversight role, failed in their duties.”


- Did you have the opportunity to meet and get to know the Enron CEO, Jeff Skilling, and CFO, Andrew Fastow who ran Enron and were on the board with you?


- You stated in your prior testimony that Mr. Skilling and Mr. Fastow misled you in a material way that most Americans refer to as “lying.” Are board members responsible to hire and manage honest and competent management? If not, who is?


- Did you notify anyone on the board or any of the Enron investors that you were concerned that the Enron operations were too complex for you and the finance committee to understand and oversee given the time and resources you had available? Why not?


- How much are you currently paid to serve as a board member of Enron? If you could not understand Enron prior to its bankruptcy, which has increased the complexity of its situation, why do you believe you are now?


Enron Government Contracts


- Do you believe that Enron should continue to serve as a government contractor when its management, auditors and lawyers are people who you believe would mislead their own board and its trading operation has “stolen” revenues from California with trading strategies that are either illegal or not allowed under the appropriate statutes and regulations?




- Given your testimony in February that Arthur Andersen lied to you and the Finance Committee, why does your company DynCorp continue to use Arthur Andersen as it auditor? I am assuming that you as a lead investor and member of the DynCorp board would not jeopardize your investment by retaining an auditor who had misled you and a board in a manner that would lead to such a collapse.


- DynCorp has stated that it intends to sell the company at a large profit. Will you be selling your investment and stepping down from the board? Does the timing of this sale relate to potential conflicts of interest between DynCorp’s work for DOJ and SEC enforcement and the investigation and prosecution of your role in Enron or any of your other investments?


- Was Harvard Endowment either directly or indirectly (through an investment manager such as Highfields Capital or through one of the partnerships arranged and controlled by your company, Capricorn Holdings) ever had an economic interest in in DynCorp?


- Please explain the Promis system and DynCorp’s role in managing Promis and similar surveillance’s systems for the US government?


Promis, Echelon & Insider Trading


- There have been press reports regarding as many as 20 CIA employees on Enron’s payroll. There have also been press reports of Enron’s access to Echelon --a sophisticated intelligence agency surveillance system-- to help Enron gain “insider information” on the inner workings of sovereign governments in situations like negotiations in India. Why would Enron use such technology? Did Enron also have access to PROMIS, which your company DynCorp helps to manage at DOJ?


- After Enron filed bankruptcy, a press report indicated that the Enron in-house private investigation staff of former CIA and FBI agents were going to start their own firm. Why did Enron have people with this background on staff? What types of services did they provide? Are you aware of allegations that Promis is being used to compromise US government agency computerized accounting and payment systems? Would you care to comment on them?


- Harvard’s largest money manager Highfields Capital as well as your fellow Enron board members had the foresight to make substantial profits from selling or shorting Enron stock. As a trustee of Harvard Corporation and investment partner with Harvard Endowment and Finance Chairman of the Enron board, how is it that you were "unaware" of the problems so many of your close associates were acting upon for so many months How is that Highfields and your fellow Enron board members had access to this information and you did not?


- Please describe the mechanisms used by intelligence operatives and money laundering experts in buying and selling stock in “street” or third party names, avoiding disclosure and SEC filings that would jeopardize insider trading or money laundering profits? Do you have any personal knowledge that such devices may have been used by any Enron board members or employees to profit on an Enron “pump and dump” fraud scheme?


Powers Committee


You were part of the special board committee established by Enron’s board to investigate any wrongdoing by Enron.


- Did Mr. Baxter, the former Enron executive who died recently under mysterious circumstances, provide information or testimony to the Powers committee?


- Please provide a chronology of the information that came to the Powers committee compared to the dates of various actions that have limited the ability of government and civil attorneys to recapture cash, including (i) shredding of documents by Enron employees and auditors (ii) transfer of Enron On Line and its employees to one of the large bank creditors and trading partners, UBS, which enjoys the privacy of Swiss banking laws, (iii) transfer of Enron’s London based gold bullion and gold derivatives trading operation, (iv) filing for bankruptcy, and (v) Mr. Baxter’s untimely and mysterious death.




Given the costs of both Enron’s success and failure on ordinary men and women in the US and globally, we would like to also ask you some questions about the impact of you and your various investments on communities and taxpayers worldwide.

Latin America


-   Your company DynCorp has significant government contracts supporting the War on Drugs in Colombia, Peru and Bolivia funded by the US taxpayers. Do you believe that your activities are helping to eradicate illegal narcotics or simply to ensure that private investors control the land and cash flows related to illegal narcotics and other assets in Latin America? What are the implications to US tax supported credit in the region?


NYSE Chairman Richard Grasso Embracing A FARC Commander 


- Could you please comment on how the above picture of Richard Grasso, Chairman of the NYSE hugging a FARC Commander in 1999 in a Colombian village fits with your vision of DynCorp’s’ goals and objectives in Latin and North America War on Drugs operations funded with taxpayers monies?[6]


Greg Palast, BBC and Guardian/Observer correspondent, has documented the use of secret agreements by the World Bank to engineer transfer of essential pubic resources in Argentina and other countries into multinational corporations at below market values.


- Have you read BBC reporter Greg Palast’s disclosures (see footnote) of the types of public projects using public assistance or supported by government contracts?[7]


- What is the relationship between the system that Mr. Palast describes and the activities and investments in Latin America of DynCorp, Harvard Endowment and its money managers, Enron, Capricorn Holdings or any other companies and investors with which you are affiliated?

Al Giordano of Narco News has documented activities of both DynCorp and Citibank in Latin America. Your partner Dudley Mecum is on the board of DynCorp with you and also on the board of Citibank.


- Do you find it inconsistent that the American taxpayers are paying your company DynCorp so much money to help implement the War on Drugs and yet Citibank seems to elude accountability for its involvement in narcotics related money laundering?


- What is the relationship between US military/enforcement and DynCorp’s activities in Latin America and the growth of Citibank’s profits and deposits in Latin America?




Significant documentation (see footnote) exists for $7 billion of public taxpayer supported assistance to Enron for its project in India and other global projects.[7]


- What is the impact on the economics of a country like India of non-economic Enron power plants and the related debt? What is the impact on American taxpayers when the plant cannot carry the debt?


- What is the impact on the governance of a country when a company like Enron employs Echelon and the types of tactics reported in India?


- Do you believe that the importance to Enron of the Central Asian pipeline from Afghanistan to nearby the location of Enron’s plant in India had anything to do with America going to war in Afghanistan?


South Africa


You were a member of the search committee that recommended that Mr. Summers be hired as the President of Harvard. We have reports during President Summers time as the Secretary of the Treasury of manipulation of the gold market and gold prices that has been documented by Bill Murphy, Reg Howe, James Turk and other members of the Gold Anti-Trust Action Committee (GATA) and is envisioned by an earlier paper of President Summers.


- Are you aware that Mr. Summers is implicated in allegations of manipulating the gold market as Secretary of the Treasury?[8]


- If GATA’s allegations are correct, can you please describe the impact on loss of revenues and employment on South Africa’s work force and other countries involved in gold mining?


- Please describe the relationship of manipulating gold prices to the consolidation of currency systems worldwide and the resulting centralization of economic wealth.


HUD-DOJ/War on Drugs: The Perlie Rucker & Asset Forfeiture Fund Standards of Negligence:


Your companies DynCorp and Capricorn Holdings have generated significant profits or stock profits from their investments and contracting work for the Department of Housing and Urban Development (HUD) and DOJ, particularly on activities with respect to the War on Drugs. At DOJ, DynCorp has a $60MM annual contract to provide support to the DOJ Asset Forfeiture Fund. At HUD, DynCorp has a $50MM plus contract to support the HUD Inspector General.

HUD and DOJ have recently won a supreme court ruling that permits them to evict a grandmother from HUD housing based on a very high standard of “negligence” (See In this landmark case, grandmother Perlie Rucker is to be evicted from her HUD housing because she failed to prevent her mentally retarded teen age granddaughter from using illegal drugs several blocks from her home, even though her granddaughters activities occurred without her knowledge or consent. These operations are in areas supported by DynCorp contracts.


- If you and your attorneys were to apply the “Perlie Rucker” standards of negligence to your performance as Chairman of the Enron Finance committee, what actions would that suggest for federal prosecutors with respect to Pug Winokur?


- If you and your attorneys were to apply the standards of probable fraud used to justify seizure of business and personal assets and civil money penalties by the DOJ Asset Forfeiture fund and the HUD IG Operation Safe Home or other enforcement activities and programs that generate profits for you and your investors, what actions would that suggest for federal prosecutors with respect to Pug Winokur?


HUD Landlord and Mortgage Banking Business


I have described a pattern of institutional corruption between Harvard and HUD similar to what Harvard Watch described between Harvard and Enron. US taxpayers and communities lost while Harvard's endowment, its network of investors and Harvard government contracts and appointees benefited from their ability to influence policy and budgets. This includes Harvard Kennedy School promotion of a housing program that builds housing for $150,000-250,000 per unit in neighborhoods where single-family homes could be rehabbed and sold for $25-75,000. Harvard’s HUD company, NHP, and Harvard affiliated administration officials failed to embrace or were opposed to numerous innovations to improve return on investment to both taxpayers and communities at HUD.[9]


- Can you explain the relationship of NHP’s lobbying efforts to adopt policies that have been

much more expensive for communities and taxpayers with Capricorn’s and Harvard’s stock profits on the sale of NHP to AIMCO and the sale of WMF, the largest FHA/HUD multifamily mortgage broker, to Prudential?


- Was NHP’s opposition to HUD loan sales (privatizations at full market price) driven by the fact that Harvard Endowment and its investments were engineering government policy world wide to arrange privatizations at below market price and deregulation at above market prices globally?




Anne Williamson has documented a pattern of institutional corruption by Harvard University to use its academic resources and reputation to promote bid rigging and insider trading on Russian privatizations ---- advantaging Harvard's Endowment, its network of investors and government contract business. US taxpayers and Russian citizens lost big. It seems Harvard's business ---funded by US taxpayers through USAID---was to help engineer transfers of public assets at far below market value to a private syndicate of insiders. [10]


- During this period, the poverty in former Soviet republics grew from 14 million in 1992 to over 147 million in 2000. Do you believe that people and organizations that engage in financial fraud on this scale are liable under US and international genocide laws?


- As a former member of Harvard Management during this period, how would respond to Williamson’s claims that Harvard Endowment was trading in Russian bonds on insider information?


$3.3 Trillion of Missing Money


We have reports of over $3.3 trillion of undocumentable adjustments to balance the accounts from HUD and DOD during fiscal years 1998-2000. In 2001, both agencies refuse to disclose what the undocumentable adjustments are needed annually to cook their books. DOD refuses to comply with requirements to provide certified financial statements since the requirement went into effect in 1995 , with HUD refusing to comply in 1999. We have various allegations from whistleblowers that assets are being stolen from inventory as well as through computer systems. Congressional appropriations staff has stated that HUD is being run as a criminal enterprise. This would necessitate DOJ and the US Treasury running HUD as a criminal enterprise as they run HUD with the help of numerous companies also affiliated with Enron. DOD and HUD are both agencies where your company DynCorp is active in helping to run the computer systems.


- Based on the extraordinary knowledge that you have access to as a result of the fact that DynCorp is paid by the taxpayers to collect and manage information on our behalf, how much in taxpayers money is missing, who has it and how do we get it back?


- Is the pattern of the money missing from US agencies and the US Treasury reminiscent of the money illegally laundered out of Russia during the 1990’s? Are the same people involved?

Pedophilia/Human Slave Trafficking


Your company DynCorp is the subject of two law suits regarding slave trafficking in human children by DynCorp employees to provide sexual services to DynCorp employees, including site project managers and working closely with local mafia --- all while working on taxpayer funded projects.[11]


- Please comment on the use of sex slaves for compromising government officials and members of the judiciary to support privatization, deregulation and financial fraud in the US and globally?




If everyone one of us took those actions that were fun and comfortable for them, imagine what millions of people could do? Every bit adds up.


- Taxation - Are you a tax attorney, accountant or judge? We need advice as to our legal remedies. If the federal government is failing to comply with the law regarding financial management and disclosure of its monies as well as the enforcement of private and public frauds that impact the US Treasury and the federal credit, what are our remedies? If government is a self professed “criminal enterprise” that refuses to obey the law and to be financially or otherwise accountable, what are our legal obligations in terms of our tax dollars and the federal credit?


- Media - Most national news is not news. It is advertisement disguised as entertainment. Let’s stop calling it media or news and start calling it advertisement. Switch your attention and purchase dollars and donations to alternative news; cut out all media that is not giving you transparency about “how the money works.” Feel free to write and call and give the feedback that will inspire transparency, but back it up by “voting with your time and money.


- Banks and Securities: - Pull your deposits, credit cards, financing and investments from any companies and banks implicated in the Enron fraud.


- Consumer Purchases: - Switch your purchases away from any companies implicated in the Enron fraud; For example, Pug’s company is an investor in Mrs. Field’s Cookies, the Great American Pretzel Company and TCBY Yogurt. Every time you buy these products, you put more money in Pug’s pocket.


- Elections: - Turn out at every town hall meeting and ask for the money back, before any proposals of layoffs or increased state taxes. Vote out of office anyone who will not commit to get our money back.


- Internal Revenue Service: - Got to the IRS website, link to the hotline and send your request that Harvard Endowment and Harvard be reviewed to ensure that they are in compliance with their tax-exempt status.


- Securities & Exchange Commission: - Go to the SEC website, link to the enforcement hotline and demand that the patterns of potential insider trading in Enron’s stock by Highfields Capital and Harvard Endowment be investigated. Don’t think you need to be an American. Enron harmed global investors.


- Get it in Writing: - Write your Congressman and Senators and insist on a written explanation of why Ken Lay, Jeff Skilling and the other members of the board and management are being allowed to keep over $1 billion of profits from stock sales before Enron tanked?


- State and Local Hotlines: - Find the hotline equivalent for all of the Commonwealth of Massachusetts securities and investment advisory regulators and demand that Highfields and Harvard be investigated.


- Have an Enron Party: - Involve your book, investment or other local club or civic group in doing the steps above that strike your fancy.


- Class Action Suits: - If you have an opportunity to bring or support a legitimate class action suit, do so. This may be the last legal enforcement mechanism left in America.


- Good Old Fashion “Shunning”: - If you live next to Pug, Ken & Linda, Jeff or Andrew, sell your house and move across town.


- Put Pug & His Pal’s in Google Prison: - Write a letter to the editor of your local paper or an article and get it published on line. Make sure you submit it to all the search engines (Try JimTools at




[1] The Role of Board of Directors in Enron’s Collapse, Tuesday, May 7, 2002, 9:30, Permanent Subcommittee on Investigations, Committee on Governmental Affairs, United States Senate`gov_affairs/psi.htm
Witness list:`gov_affairs/050702witness.htm
Statement of Herbert S. Winokur, Jr., May 7, 2002
Radio KPFA: Enron: Anatomy of a Cover Up (February 2002)
See real audio archives for February 12, 13, 15, 26, 28th, March 6:
For summary national show on Enron Cover Up on February 28th, start 17 minutes in at:
A transcript of the first Enron interview with Dennis Bernstein:


[2] The Myth of the Rule of Law: The Destruction of Hamilton Securities:
Thankless Task, by Paul Rodriguez (5/21/01):
HUD Gives Up with Fitts, by Paul Rodriguez (7/30/01):
Uri Downbenko's "Catherine Austin Fitts: Enemy of the State" Series:
HUD Fraud, Spooks and the Slumlords of Harvard, Uri Dowbenko (September 2000)
DOJ Lies, Uri Dowbenko (2001)
Redefining the Killer App: AntiTrust and the Real World, by Uri Dowbenko (2/6/01):


[3] To read Harvard Watch's excellent report, "Trading Truth at Harvard: A Report on Harvard's Enron Entanglements, " covering (i) Enron and Mr. Winokur's use of Harvard's Kennedy and Business Schools to influence government policy on outsourcing of defense functions to private contractors and energy deregulation, (ii) Highfields Capital's profits on Enron short selling and (iii) various relations between Harvard and Enron, see:
To support their excellent recommendations, call or write Lawrence Summers, President, Harvard College

[4] From Boston Globe By Beth Healy and Patrick Healy, 4/6/2002, “Summers did not try to persuade Winokur to remain on the board, however, according to a senior university official who spoke on the promise that he not be named. ''There was no entreaty from Larry,'' the official said.”


[5] The War on Waste, CBS News, (January 29, 2002)
The Kelly O'Meara "Missing Money" Series:
Harvard Watch's "Trading Truth: A Report on Harvard's Enron Entanglements"

Follow the Yellow Brick Road: From Harvard to Enron, by Linda Minor
Part One:,19,02harvardtoenron,pt1.htm
Part Two:,4,02,harvardtoenronpt2.htm
Part Three: To Be Published 4/02 at


[6] Richard Grasso hugging FARC Commander in Colombia:


[7] World Bank Secret Documents Consumes Argentina
See: Enron’s Pawns: How Public Institutions Bankrolled Enron’s Globalization Game:


[8] Gold Anti-Trust Action (GATA):
All That Glitters Is Not Gold, by Kelly O'Meara (3/4/02)
Gibson's Paradox and the Gold Standard in PDF Format.
Robert B. Barsky, Lawrence H. Summers
The Journal of Political Economy, Vol. 96, No. 3. (Jun., 1988), pp. 528-550.


[9] See The Edgewood Stories: Part One – Three:
The Myth of the Rule of Law: How the Money Works on the Destruction of Hamilton Securities:


[10] The Rape of Russia: Testimony by Anne Williamson before the Committee on Banking and Financial Services of the U.S. House of Representatives, September 21, 1999.
Qui Tam Adopted by DOJ vs. Harvard regarding contracting services provided
through US AID

[11] Broken Wings
DynCorp Disgrace

Catherine Austin Fitts is a former managing director and member of the board of directors of Dillon Read & Co, Inc, a former Assistant Secretary of Housing-Federal Housing Commissioner in the first Bush Administration, and President of The Hamilton Securities Group, Inc. She is the President of Solari, Inc, an investment advisory firm. Solari provides risk management services to investors through Sanders Research Associates in London. To sign up for the Solari Action email: Website:


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Posted with author's permission.