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Because he was CFO, his fiduciary duties included looking out for the best interests of the company while also becoming the general partner of this investment partnership, LJM, where he raised 0 million of limited partner monies and was charged with maximizing returns for limited partners.
Trouble was that LJM's business was to do business with Enron.
Domestically, you could manage, but when it came to international travel -- that agency was very nearly incompetent.In every transaction Fastow had to choose: Enron or LJM. Why did Enron's board allow such a conflict of interest?I must conclude that their judgment was severely clouded by the fees they received as directors.Harvard University did a case study; Business Week, Forbes and Fortune routinely covered the company in a favorable light.In fact, Fortune named Enron the most innovative company in America for six years in row, beginning in 1996. You've said that Ken Lay would force all Enron employees to book corporate travel through his sister's travel agency even though it was more expensive than more competent agencies.