On this day in 1932, in a crime that captured the attention of the entire nation, Charles Lindbergh III, the 20-month-old son of aviation hero Charles Lindbergh, is kidnapped from the family’s new mansion in Hopewell, New Jersey. Lindbergh, who became an international celebrity when he flew the first solo flight across the Atlantic Ocean in 1927, and his wife Anne discovered a ransom note demanding $50,000 in their son’s empty room. The kidnapper used a ladder to climb up to the open second-floor window and left muddy footprints in the room.

The Lindberghs were inundated by offers of assistance and false clues. Even Al Capone offered his help from prison. For three days, investigators found nothing and there was no further word from the kidnappers. Then, a new letter showed up, this time demanding $70,000.

The kidnappers eventually gave instructions for dropping off the money and when it was delivered, the Lindberghs were told their baby was on a boat called Nelly off the coast of Massachusetts. After an exhaustive search, however, there was no sign of either the boat or the child. Soon after, the baby’s body was discovered near the Lindbergh mansion. He had been killed the night of the kidnapping and was found less than a mile from home. The heartbroken Lindberghs ended up donating the mansion to charity and moved away.

The kidnapping looked like it would go unsolved until September 1934, when a marked bill from the ransom turned up. The gas station attendant who had accepted the bill wrote down the license plate number because he was suspicious of the driver. It was tracked back to a German immigrant and carpenter, Bruno Hauptmann. When his home was searched, detectives found a chunk of Lindbergh ransom money.

Hauptmann claimed that a friend had given him the money to hold and that he had no connection to the crime. The resulting trial was a national sensation. The prosecution’s case was not particularly strong; the main evidence, besides the money, was testimony from handwriting experts that the ransom note had been written by Hauptmann. The prosecution also tried to establish a connection between Hauptmann and the type of wood that was used to make the ladder.

Still, the evidence and intense public pressure were enough to convict Hauptmann and he was electrocuted in 1935. In the aftermath of the crime–the most notorious of the 1930s–kidnapping was made a federal offense.

HISTORY.COM
Date: 2009-03-01

On this day in 2001, the Enron Corporation files for Chapter 11 bankruptcy protection in a New York court, sparking one of the largest corporate scandals in U.S. history.

An energy-trading company based in Houston, Texas, Enron was formed in 1985 as the merger of two gas companies, Houston Natural Gas and Internorth. Under chairman and CEO Kenneth Lay, Enron rose as high as number seven on Fortune magazine’s list of the top 500 U.S. companies. In 2000, the company employed 21,000 people and posted revenue of $111 billion. Over the next year, however, Enron’s stock price began a dramatic slide, dropping from $90.75 in August 2000 to $0.26 by closing on November 30, 2001.

As prices fell, Lay sold large amounts of his Enron stock, while simultaneously encouraging Enron employees to buy more shares and assuring them that the company was on the rebound. Employees saw their retirement savings accounts wiped out as Enron’s stock price continued to plummet. After another energy company, Dynegy, canceled a planned $8.4 billion buy-out in late November, Enron filed for bankruptcy. By the end of the year, Enron’s collapse had cost investors billions of dollars, wiped out some 5,600 jobs and liquidated almost $2.1 billion in pension plans.

Over the next several years, the name “Enron” became synonymous with large-scale corporate fraud and corruption, as an investigation by the Securities and Exchange Commission and the U.S. Justice Department revealed that Enron had inflated its earnings by hiding debts and losses in subsidiary partnerships. The government subsequently accused Lay and Jeffrey K. Skilling, who served as Enron’s CEO from February to August 2001, of conspiring to cover up their company’s financial weaknesses from investors. The investigation also brought down accounting giant Arthur Anderson, whose auditors were found guilty of deliberately destroying documents incriminating to Enron.

In July 2004, a Houston court indicted Skilling on 35 counts including fraud, conspiracy and insider trading. Lay was charged with 11 similar crimes. The trial began on January 30, 2006, in Houston. A number of former Enron employees appeared on the stand, including Andrew Fastow, Enron’s ex-CFO, who early on pleaded guilty to two counts of conspiracy and agreed to testify against his former bosses. Over the course of the trial, the defiant Skilling–who unloaded almost $60 million worth of Enron stock shortly after his resignation but refused to admit he knew of the company’s impending collapse–emerged as the figure many identified most personally with the scandal. In May 2006, Skilling was convicted of 19 of 35 counts, while Lay was found guilty on 10 counts of fraud and conspiracy. When Lay died from heart disease just two months later, a Houston judge vacated the counts against him. That October, the 52-year-old Skilling was sentenced to more than 24 years in prison.

HISTORY.COM
Date: 2008-12-02

Thank you Mr. Fox