Update on Steve Todoroff Prosecution--CONFIDENTIAL/SUBJECT TO ,
 Almost one month ago, Special Agent Carl Wake of the FBI called me about the 
Steve Todoroff investigation.  He indicated that the FBI had recently learned 
of the article about EOTT's NGL theft that appeared in the business section 
of the Houston Chronicle.  Mr. Wake said it might be a matter the FBI would 
like to investigate.  I told Mr. Wake that EOTT was currently working with 
the Harris County District Attorney on the prosecution of this matter, and I 
thanked him for the FBI's interest.  He told me that the FBI might want to 
work with the Harris County District Attorney in investigating this matter, 
and he stated that there may be investigative information that the FBI can 
obtain more quickly than the Harris County District Attorney.  Mr. Wake 
requested a copy of the materials we had provided to the Harris County 
District Attorney.

In order to avoid damage to the good rapport we have established with 
Assistant District Attorney Bill Moore, I asked John DeGeeter to call Bill 
Moore and advise him of the contact that had been made by the FBI.  Bill 
Moore agreed to call Carl Wake and work with Mr. Wake on his request for the 
materials provided by EOTT.

Carl Wake called me again yesterday.  He has been working with Bill Moore.  
Mr. Wake stated it was too early to speculate as to what charges would be 
brought.  He did say that our materials clearly indicated federal wire fraud 
and possibly mail fraud.  He said that where there is wire fraud, there is 
usually money laundering. 

The purpose of Mr. Wake's call yesterday was to inquire about the status of 
some interview summaries that John DeGeeter and I have prepared and collected 
at the request of Bill Moore.  Mr. Wake requested that EOTT send a copy of 
the summaries to him when we sent the summaries to Bill Moore.  Those 
summaries were sent out today.

I gathered from my calls with Carl Wake that the FBI is very interested in 
taking an active part in this investigation.  In order to build on the 
relationship we have established with Bill Moore, we will continue to direct 
our inquires about the investigation to Mr. Moore until he tells us to do 
otherwise.
michael.burke@enron.com, dana.gibbs@enron.com, lori.maddox@enron.com, 