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CNN Saturday Morning News

Former Enron Vice Chairman Commits Suicide

Aired January 26, 2002 - 08:02   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Police in Houston say a former Enron vice chairman has committed suicide. They say Jay Clifford Baxter was found dead in his car with a gun at his side.

We get details from CNN's Allan Chernoff.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN CORRESPONDENT (voice-over): Baxter was found near his Sugar Land home in a Mercedes Benz sedan on Palm Royale Boulevard, a gun in his hand, a suicide note in the vehicle.

SGT. TRUMAN BODY, SUGAR LAND POLICE: At 2:23 a.m., Sugar Land police discovered John C. Baxter located inside his vehicle, an apparent gunshot wound to the head.

CHERNOFF: Baxter, 43, had been a key executive at Enron before resigning last May. He had questioned the company's finances, according to whistle blower Sherron Watkins who, in her memo to Enron Chief Ken Lay wrote, "Cliff Baxter complained mightily to Skilling, Enron's president, and all who would listen, about the inappropriateness of our transactions with LJM." That was one of the partnerships that contributed to Enron's demise.

The Watkins memo had congressional investigators wanting to talk with Mr. Baxter. In fact, as late as Friday morning, investigators were trying to arrange a meeting through Baxter's lawyer, unaware that Mr. Baxter had already taken his own life.

A former captain in the air force and valedictorian of Columbia business school's class of `87, Cliff Baxter had been a star at Enron. After joining in 1991, he rose to become chief investment officer in 1997. In 1999, he became CEO of Enron North America, the commodity trading operation that generated the vast majority of Enron`s revenues. He moved on to be vice chairman in charge of mergers and acquisitions, then suddenly resigned last May.

Before stepping down, Baxter earned nearly $22 million from selling Enron stock. He, along with other officers of Enron, had been sued by stockholders. Enron released a statement. "We are deeply saddened by the tragic loss of our friend and colleague Cliff Baxter. Our thoughts and prayers go out to his family and friends."

(on camera): Sherron Watkins' attorney released a statement saying she is stunned beyond belief. Mr. Baxter had the utmost integrity and she respected him immensely.

Allan Chernoff, CNN Financial News, New York.

(END VIDEOTAPE)

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