Schwarzenegger and Enron

As other commentators have noted, meeting with Ken Lay at the height of the California energy crisis is a bit like meeting with Osama bin Laden the afternoon of 9-11.

Yet Arnold Schwarzenegger did just that. There has been strong evidence of such a meeting for some time, yet Schwarzenegger says he doesn't "remember" the meeting. He doesn't deny it. Just doesn't "remember."

Do you believe him?

Greg Palast, a former government investigator of fraud and racketeering, gets some new documents:

It's not what Arnold Schwarzenegger did to the girls a decade back that should raise an eyebrow.  According to a series of memoranda our office obtained today, it's his dalliance with the boys in a hotel room just two years ago that's the real scandal.

The wannabe governor has yet to deny that on May 17, 2001, at the Peninsula Hotel in Los Angeles, he had consensual political intercourse with Enron chieftain Kenneth Lay.  Also frolicking with Arnold and Ken was convicted stock swindler Mike Milken.

Now, thirty-four pages of internal Enron memoranda have just come through this reporter's fax machine tell all about the tryst between Maria's husband and the corporate con men.  It turns out that Schwarzenegger knowingly joined the hush-hush encounter as part of a campaign to sabotage a Davis-Bustamante plan to make Enron and other power pirates then ravaging California pay back the $9 billion in illicit profits they carried off.

Here's the story Arnold doesn't want you to hear.  The biggest single threat to Ken Lay and the electricity lords is a private lawsuit filed last year under California's unique Civil Code provision 17200, the "Unfair Business Practices Act."  This litigation, heading to trial now in Los Angeles, would make the power companies return the $9 billion they filched from California electricity and gas customers.

It takes real cojones to bring such a suit.  Who's the plaintiff taking on the bad guys?  Cruz Bustamante, Lieutenant Governor and reluctant leading candidate against Schwarzenegger.

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  • 1 - Phillip Winn

    Oct 06, 2003 at 1:22 pm

    ...meeting with Ken Lay at the height of the California energy crisis is a bit like meeting with Osama bin Laden the afternoon of 9-11.

    Only if you accept the ridiculous notion that Enron or Ken Lay is somehow the mastermind behind California's energy woes. The California legislature bears 98% of the blame for California's energy problem, the remaining 2% to be split any number of ways. Profiting after the fact is hardly the same as causing something, and I seem to remember California walking away from promises to pay, too.

    This is, of course, slightly off-topic.

  • 2 - Scarlett_16

    Jul 23, 2004 at 8:36 pm

    He doesn't remember the meeting? This is strikingly similar to the response a former California governor gave when asked about Iran/Contra.

    Arnold Schwarzenegger ----> Get the latest groping news

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