United States v. Daniel Bayly et al.

Closed Criminal Division Cases

United States v. Daniel Bayly et al.
Court Docket Numbers: H-00363-001

This case is assigned to the Honorable Judge Ewing Werlein Jr. in Courtroom 11D, United States Courthouse, 515 Rusk Avenue, Houston, Texas. The previously scheduled pretrial conference in this case has been postponed to January 14, 2010 at 11:00 a.m. Jury selection and trial set for February 8, 2010 at 9:00 a.m. Upon motion of the government, all charges against defendant Bayly only were dismissed on January 11, 2010.

On June 16, 2009, the Fifth Circuit ruled that there is no issue of double jeopardy or collateral estoppel preventing a retrial of the three former Merrill Lynch executives on charges that they helped defraud Enron Corporation and its shareholders by agreeing to “park” Nigerian power-generating barges with Merrill Lynch in order to artificially inflate Enron’s 1999 earnings. That transaction allowed Enron to enhance fraudulently its year-end 1999 financial position that it presented to the public and to meet its projected year-end numbers.

In 2006, the Fifth Circuit overturned the November 2004 conspiracy and wire fraud convictions of James Brown, a former head of Merrill Lynch’s Strategic Asset Lease and Finance group; Robert Furst, former Enron relationship manager for Merrill Lynch in its investment banking division; and Daniel Bayly, former head of the Merrill Lynch’s Global Investment Banking division, holding that the government tried them on an invalid theory of theft of honest services because they had acted in the company’s best interests and had not personally benefitted from the scheme to inflate Enron’s earnings.  Bayly was sentenced to 2 years and 6 months in prison, a $250,000 fine and restitution of $590,000. Furst was sentenced to 3 years and 1 month in prison, a $75,000 fine and restitution of $590,000. And, Brown was sentenced to 3 years and 10 months in prison, a $250,000 fine and restitution of $590,000.

Order Granting Dismissal

Order resetting Pre Trial Conference

Order of Amended Docket Order

Notice to Appear

5th Circuit Decision

Notice Vacating Trial Setting

Notice of Resetting

Scheduling Order Setting Pretrial Conference

Government Motion to Strike Surplusage from the Indictment

Order Granting Motion to Modify Conditions of Pretrial Release as to Bayly, Brown