Former Enron Exec Settles Fraud Charges for $1.49 Million

Enron Corp.'s (search) former director of investor relations has agreed to pay $1.49 million to settle fraud charges related to the bankrupt energy company, U.S. securities regulators said on Wednesday.

Mark Koenig (search) has also agreed to plead guilty to a related criminal charge and cooperate with the government's continuing investigation, the Securities and Exchange Commission (search) said.

Koenig, who was an Enron executive vice president, settled with the SEC without admitting or denying the charges.

Enron, once the seventh-largest U.S. company, collapsed in December 2001 amid an accounting scandal involving billions of dollars of hidden debt.

Other former Enron executives, including former Chairman Ken Lay (search), are awaiting criminal trials stemming from their involvement in the company's downfall.

The SEC said Koenig distributed and approved the distribution of false and misleading information to the public about Enron's business in earnings releases and calls to analysts.

While he was reviewing and editing Enron earnings releases in 2001, Koenig learned that some company business segments "were not the successful business units described in the earnings releases and scripts, and as described by Enron in the analyst calls," the SEC said.

But Koenig did not correct the information and made false and misleading statements during analyst calls, it said.

An attorney for Koenig could not immediately be reached for comment.

Koenig was barred by the SEC from acting as an officer or director of a public company as part of the settlement.