Sunday, August 4, 2019

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HOUSTON, Texas (CNN) -- Enron security guards were stationed on the 19th and 20th floors of the company's building here Tuesday to prevent further shredding of documents, company lawyers said during a federal court hearing. Former executive Maureen Castaneda said Monday employees were shredding documents as late as January 14, in spite of the company's December bankruptcy filing that costs thousands of investors and employees their life savings. In the wake of the reports of continued shredding, Enron lawyers said the company allowed FBI agents in the building to interview employees and that guards had been posted round the clock to prevent more document destruction. Some 40 attorneys representing investors asked a judge to place federal marshals or an outside firm's security guards in the Enron building to prevent shredding. The lawyers also asked the judge to take possession of all documents relevant to the investigation into the collapse of the energy giant -- including boxes of shredded papers they said company executives ordered destroyed. It was also revealed in court that shredded documents were found in a wastebasket, which was turned over to authorities. It is not clear who conducted the search in which the papers were discovered. Packing materials become evidence MORE STORIES Shredding through history Ex-Enron exec: Shredding went on after probe began VIDEO/AUDIO †¢ Enron collapse hurts Houston charities †¢ Enron: A tale of two meetings MORE STORIES †¢ Ex-Enron exec: Shredding went on after probe began †¢ Lawyer who wrote document memo quizzed †¢ Terms set for sale of Enron's Indian plant †¢ Andersen blame game heats up EXTRA INFORMATION †¢ Guide to the fall of Enron †¢ Bush administration ties †¢ Chapter 11 timeline RESOURCES †¢ In-Depth: The end of Enron? †¢ Protect your 401(k) †¢ Inside the scandal †¢ In Focus: What happened? LEGAL RESOURCES Latest Legal News Law Library FindLaw Consumer Center Select a topicBankruptcyDiscriminationDivorceEstate PlanningLandlord-TenantPersonal InjuryTaxes Castaneda said she took boxes of shredded paper home with her to use as packing material. She later realized the significance of the refuse. She recalled e-mails telling employees how to handle financial documents. "One said our policy is not to destroy documents, given the threatening legal suits," she told CNN. "And that's what made me realize that I had more than just shreds." "It is an absolute smoking gun," said Castaneda's attorney, Paul Howes, referring to the shredded papers. Howes is with Milberg, Weiss, a San Diego-based firm that specializes in class action suits.

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