User:Mliu92/sandbox/LLP

Lou Lung Pai born in Nanjing, China in 1946,  is a Chinese-American businessman and former Enron executive. He was CEO of Enron Energy Services from March 1997 until January 2001 and CEO of Enron Xcelerator, a venture capital division of Enron, from February 2001 until June 2001. He left Enron with over $280 million. Pai was the second largest land owner in Colorado after he purchased the 77500 acre Taylor Ranch for US$12 million in 1999, though he sold the property in June 2004 for US$60 million.

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".

Background
Pai was born in Nanjing, China and came to the United States 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, Shih-I Pai, was a prominent aeronautics professor. Pai worked for the federal government in the 1970s before joining Enron.

His sister is Sue Pai Yang, the first Asian American appointed to be a New Jersey Workers' Compensation Judge.

Enron
Skilled in math, Pai joined Enron in 1987, when it was still just a regional energy supplier. He became one of (eventual) CEO Jeffrey Skilling’s top lieutenants, primarily tasked with detailing and implementing Skilling’s vision of transforming Enron into a de facto energy-commodities-trading firm. During his Enron career, Skilling put Pai in charge of multiple Enron subsidiaries; Pai was CEO of the EES (Enron Energy Services) subsidiary from March 1997, until May 2001. The reasons for his resignation from Enron remain shrouded in mystery.

Deregulation

 * http://www.nytimes.com/1998/04/02/business/deregulation-of-utilities-in-california.html
 * http://www.nytimes.com/1998/04/23/business/in-california-enron-curbs-power-sales.html
 * http://www.nytimes.com/1999/06/27/business/a-culture-of-trial-despite-error.html
 * Joined CA energy market in 1998, but withdrew a few weeks later.

Corporate Culture
Despite a reputation for being extremely introverted, taciturn, and reclusive around the office, Pai also came to symbolize the legendary lavishness and excesses of Enron’s corporate culture. Though married, Pai was known to: spend inordinate amounts of time during and after working hours in Houston-area strip clubs; use the Enron corporate jet for personal commuting; and, charge several-hundred dollars worth of lunches for himself and accompanying staff to the corporate expense account (until Chairman Ken Lay later prohibited it).
 * Hawker jet as tax shelter: http://www.nytimes.com/2003/02/14/business/14ENRO.html
 * Large cash bonus ($3M in 2000): http://www.nytimes.com/2002/06/18/business/officials-got-a-windfall-before-enron-s-collapse.html

With the completion of two separate transactions (in 1997 and 1999), Pai became the second-largest landowner in Colorado after purchasing the Taylor Ranch and renaming it Culebra Ranch and Jaroso Creek Ranch. The property included a 14047 ft mountain, Culebra Peak. His neighbors reportedly referred to the ranch as "Mount Pai".

Operation of EES

 * Characterized as a visionary but not details. http://www.nytimes.com/2002/02/15/business/enron-s-many-strands-subsidiary-for-executives-enron-unit-skill-was-leaving.html
 * Accounting lapses at EES: http://www.nytimes.com/2002/01/25/business/enron-s-collapse-selling-energy-ex-workers-say-unit-s-earnings-were-illusory.html
 * Inflated profits? http://articles.chicagotribune.com/2002-01-25/news/0201250306_1_million-in-enron-stock-senior-enron-executives-enron-energy-services
 * Concealed losses? http://articles.chicagotribune.com/2006-02-23/business/0602230100_1_jeffrey-skilling-paula-rieker-lay-and-other-enron
 * Manipulation of CA: http://articles.chicagotribune.com/2001-01-19/news/0101190236_1_california-independent-system-operator-blackouts-enron-power-marketing

Divorce

 * Married Lanna in 1976. Lee v. Hasson, also (06 Nov 1976) http://www.dshs.state.tx.us/WorkArea/linkit.aspx?LinkIdentifier=id&ItemID=30581
 * Melanie Fewell divorces on 26 Jun 1997 (http://www.dshs.state.tx.us/WorkArea/linkit.aspx?LinkIdentifier=id&ItemID=30618) #066635 (Fort Bend)
 * Affair discovered in 1998 (?). Timeline in Lee v. Hasson, Hasson discovers most of Pai's fortune is tied up in stock options. Parties don't want to involve lawyers, so Lanna urges Pai to liquidate some (all) stocks, which starts in early 2000. Not court-ordered?
 * Total of $353M: http://www.nytimes.com/2002/01/13/business/enron-s-collapse-before-debacle-enron-insiders-cashed-in-1.1-billion-in-shares.html?pagewanted=2
 * more quotes http://www.scotsman.com/news/prophets-of-loss-1-629987
 * http://www.nytimes.com/2002/02/15/business/enron-s-many-strands-subsidiary-for-executives-enron-unit-skill-was-leaving.html
 * also at this url:
 * Lou and Lanna divorced on 21 Aug 2000 (http://www.dshs.state.tx.us/WorkArea/linkit.aspx?LinkIdentifier=id&ItemID=30581), case # 139697
 * Lou Pai and Melanie Miller marry on 22 Sep 2000 (http://www.dshs.state.tx.us/WorkArea/linkit.aspx?LinkIdentifier=id&ItemID=30621) #131532
 * Lou Pai and Melanie Miller marry on 22 Sep 2000 (http://www.dshs.state.tx.us/WorkArea/linkit.aspx?LinkIdentifier=id&ItemID=30621) #131532

Pai's frequent strip club visits led to an affair with erotic dancer Melanie Fewell (who was married, herself), and resulted in a pregnancy. Upon learning of the affair, Pai’s then-wife Lanna filed for divorce. To satisfy the financial terms of his divorce settlement, Pai cashed-out approximately $250 million of his Enron stock -- just months before the company's stock price dramatically collapsed, and it filed for bankruptcy protection. Between May 18 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. The reason for this sell-off of Enron stock had the fortuitous benefit of shielding Pai from the same insider trading charges leveled against other Enron executives (who had also secretly sold-off large amounts of stock, before the company’s ruinous finances were publicly known). After the divorce, Pai and Fewell married.

Post-Enron
Pai is the founder and chairman of Element Markets, a renewable-energy consulting firm that has hired several former Enron senior employees. Through Element, Pai has invested in pollution emissions credits. Since then, Pai has emerged as a partner in Midstream Capital Partners LLC.

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.

Personal Life
Pai has three biological children (two with his ex-wife, plus one daughter with his current wife); he also is step-father to the two children from his current wife’s prior marriage. Pai and his current wife operate Canaan Ranch, where they raise and train dressage horses near metropolitan Houston; but they later moved from Sugarland, Texas, to Middleburg, Virginia, with the Canaan Ranch adding a second location at the property formerly known as Bolinvar in Middleburg.

Philanthropy

 * Pai Ranch Academy (San Cristobal): http://www.strugglingteens.com/archives/2001/5/np03.html
 * Change to San Cristobal: https://nonprofitquarterly.org/management/45-the-enron-family-philanthropies.html
 * https://web.archive.org/web/20040605154743/http://www.sancristobalranchacademy.org/
 * divested in 2006: http://www.strugglingteens.com/artman/publish/article_5451.shtml