Lou Pai
Encyclopedia
Lou Lung Pai born Nanjing
China 1946, is a Chinese-American businessman and former Enron
executive. He was CEO of Enron Energy Services
and Enron Xcelerator, a venture capital division of Enron
. He left Enron
with over $250 million. Pai became the second largest land owner in Colorado
when he purchased the 77500 acres (314 km²) Taylor Ranch, though he later sold the property in 2005.
Lou Pai has not been charged with any criminal wrongdoing in the Enron scandal
and has exercised his 5th Amendment
right in regard to the subsequent Enron
class action
lawsuit. However, as a result of the lawsuit, Pai forfeited $6 million due to him from Enron's insurance policy for company officers to a fund for Enron shareholders.
Accounts of the Enron scandal
have frequently portrayed him as a mysterious figure; a former Enron employee, interviewed in the documentary film Enron: The Smartest Guys in the Room
, referred to Pai as "the invisible CEO".
at the age of two. Pai obtained both his B.S.
and M.S.
in economics
from the University of Maryland, College Park
, where his father was a mathematics professor.
A mathematics whiz, he was instrumental in getting Enron into the trading business. His frequent visits to strip clubs led to an affair with a stripper, Melanie Fewell. His wife, upon finding out about it, filed for divorce. To meet his divorce settlement, he cashed out of Enron an amount believed to be around $300 million just before the company's collapse. Between May 18, 2001 and June 7, 2001, Pai sold 338,897 shares of Enron stock and exercised Enron stock options that put another 572,818 shares on the open market. At the time, the shares averaged $53.78 per share. An attorney for Pai says sale of the stock was part of the divorce settlement, insulating Pai from insider trading charges, adding "He's the only guy who's ever been lucky to get divorced." Pai then married his girlfriend, now Melanie Pai.
As owner of the Taylor Ranch, Pai owned a 14,047 foot Colorado
mountain called Culebra Peak
. His neighbors reportedly referred to the ranch as "Mount Pai".
Pai is currently investing in pollution emission credits at Element Markets
.
On July 30, 2008, Pai agreed to resolve civil insider trading
charges against him with an out-of-court settlement of $31.5 million, including $1.5 million in civil fines and $30 million in restitution, to be deposited into a fund for shareholders harmed by Enron's bankruptcy. He continues to neither admit nor deny the Securities and Exchange Commission claims that he sold millions of shares of Enron stock based on non-public information about the company's financial problems. It is one of the largest settlements in the history of the SEC's enforcement program dealing with an individual for alleged insider trading. As part of the settlement, Pai is also barred from serving as an officer or director of a public company for five years.
Nanjing
' is the capital of Jiangsu province in China and has a prominent place in Chinese history and culture, having been the capital of China on several occasions...
China 1946, is a Chinese-American businessman and former Enron
Enron
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 22,000 staff and was one of the world's leading electricity, natural gas, communications, and pulp and paper companies, with...
executive. He was CEO of Enron Energy Services
Enron Energy Services
Enron Energy Services was a business unit of Enron Corporation, whose purpose was to provide gas, electricity, and energy management directly to businesses and homes. Enron compared the service to choosing a telecommunications company to provide your house with a phone line. Consumers would be...
and Enron Xcelerator, a venture capital division of Enron
Enron
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 22,000 staff and was one of the world's leading electricity, natural gas, communications, and pulp and paper companies, with...
. He left Enron
Enron
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 22,000 staff and was one of the world's leading electricity, natural gas, communications, and pulp and paper companies, with...
with over $250 million. Pai became the second largest land owner in Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
when he purchased the 77500 acres (314 km²) Taylor Ranch, though he later sold the property in 2005.
Lou Pai has not been charged with any criminal wrongdoing in the Enron scandal
Enron scandal
The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world...
and has exercised his 5th Amendment
Fifth Amendment to the United States Constitution
The Fifth Amendment to the United States Constitution, which is part of the Bill of Rights, protects against abuse of government authority in a legal procedure. Its guarantees stem from English common law which traces back to the Magna Carta in 1215...
right in regard to the subsequent Enron
Enron
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 22,000 staff and was one of the world's leading electricity, natural gas, communications, and pulp and paper companies, with...
class action
Class action
In law, a class action, a class suit, or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued...
lawsuit. However, as a result of the lawsuit, Pai forfeited $6 million due to him from Enron's insurance policy for company officers to a fund for Enron shareholders.
Accounts of the Enron scandal
Enron scandal
The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world...
have frequently portrayed him as a mysterious figure; a former Enron employee, interviewed in the documentary film Enron: The Smartest Guys in the Room
Enron: The Smartest Guys in the Room
Enron: The Smartest Guys in the Room is a 2005 documentary film based on the best-selling 2003 book of the same name by Fortune reporters Bethany McLean and Peter Elkind, a study of one of the largest business scandals in American history...
, referred to Pai as "the invisible CEO".
Life
Pai was born in Nanjing, China and came to the United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
at the age of two. Pai obtained both his B.S.
Bachelor of Science
A Bachelor of Science is an undergraduate academic degree awarded for completed courses that generally last three to five years .-Australia:In Australia, the BSc is a 3 year degree, offered from 1st year on...
and M.S.
Master of Science
A Master of Science is a postgraduate academic master's degree awarded by universities in many countries. The degree is typically studied for in the sciences including the social sciences.-Brazil, Argentina and Uruguay:...
in economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
from the University of Maryland, College Park
University of Maryland, College Park
The University of Maryland, College Park is a top-ranked public research university located in the city of College Park in Prince George's County, Maryland, just outside Washington, D.C...
, where his father was a mathematics professor.
A mathematics whiz, he was instrumental in getting Enron into the trading business. His frequent visits to strip clubs led to an affair with a stripper, Melanie Fewell. His wife, upon finding out about it, filed for divorce. To meet his divorce settlement, he cashed out of Enron an amount believed to be around $300 million just before the company's collapse. Between May 18, 2001 and June 7, 2001, Pai sold 338,897 shares of Enron stock and exercised Enron stock options that put another 572,818 shares on the open market. At the time, the shares averaged $53.78 per share. An attorney for Pai says sale of the stock was part of the divorce settlement, insulating Pai from insider trading charges, adding "He's the only guy who's ever been lucky to get divorced." Pai then married his girlfriend, now Melanie Pai.
As owner of the Taylor Ranch, Pai owned a 14,047 foot Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
mountain called Culebra Peak
Culebra Peak
Culebra Peak is the highest peak of the Culebra Range, a subrange of the Sangre de Cristo Mountains in the United States. It is the southernmost fourteener in Colorado. It is also the only fourteener on private land. Access is limited, and a fee is charged to climb the peak...
. His neighbors reportedly referred to the ranch as "Mount Pai".
Pai is currently investing in pollution emission credits at Element Markets
Element Markets
Element Markets, LLC is a limited liability company that provides environmental asset management and compliance services to institutional clients in North America. Its services span the greenhouse gas, emissions, and renewable energy credit markets. Element Markets also develops renewable energy...
.
On July 30, 2008, Pai agreed to resolve civil insider trading
Insider trading
Insider trading is the trading of a corporation's stock or other securities by individuals with potential access to non-public information about the company...
charges against him with an out-of-court settlement of $31.5 million, including $1.5 million in civil fines and $30 million in restitution, to be deposited into a fund for shareholders harmed by Enron's bankruptcy. He continues to neither admit nor deny the Securities and Exchange Commission claims that he sold millions of shares of Enron stock based on non-public information about the company's financial problems. It is one of the largest settlements in the history of the SEC's enforcement program dealing with an individual for alleged insider trading. As part of the settlement, Pai is also barred from serving as an officer or director of a public company for five years.