John Lavorato

John Lavorato was a senior Canadian trading executive at Enron who rose to become President and Chief Executive Officer of Enron Americas. Based primarily in Calgary, Canada, he was one of Enron’s most influential traders, managing gas and power trading desks across North America. A Justice Department exhibit described him as “an essential part of Enron’s energy trading success over the years.” His email archive in the Enron corpus contains 27,669 messages spanning from December 10, 1999 to November 29, 2002, documenting his oversight of trading operations and his rise through the executive ranks.

Unlike many of his senior colleagues, Lavorato was never criminally charged in connection with Enron’s collapse. His Canadian residency placed him beyond the reach of American subpoenas, though he was named as a defendant in civil lawsuits. Defense teams in Enron criminal proceedings sought his testimony, particularly regarding reserve funds, believing it could be favorable to their cases.

Career at Enron

Calgary Base and Canadian Operations

Lavorato operated from Enron’s Calgary office, as evidenced by his CAL/ECT email domain and numerous references to Calgary in his correspondence. In January 2000, he noted to colleagues, “I’m in Houston for the rest of the week,” indicating his regular commute between the Calgary headquarters and Houston operations. This position made him a crucial bridge between Enron’s Canadian market activities and its North American trading headquarters.

His early involvement in Canadian markets extended to regulatory affairs. In January 2000, Lavorato circulated a memo on Ontario and Alberta power markets that discussed meetings with Ontario Minister of Energy Jim Wilson and Ontario Minister of Environment Tony Clement at the Canadian Embassy.

Rise Through the Ranks

By July 2000, Lavorato had ascended to the Office of the Chairman for Enron North America, where he served alongside Mark Frevert and Dave Delainey. Distribution lists from this period placed him among the company’s top executives, receiving communications alongside Ken Lay, Jeff Skilling, Greg Whalley, and Louise Kitchen.

By December 4, 2000, Dave Delainey held the position of President and CEO of Enron Americas, with Lavorato serving as Chief Operating Officer. When Delainey later moved to Enron Energy Services, Lavorato succeeded him as President and CEO of Enron Americas. Louise Kitchen then became his Chief Operating Officer, creating a partnership that would guide Enron Americas through its final tumultuous months.

Trading Desk Management

Lavorato’s core function at Enron was managing the trading desks that generated the company’s energy trading revenues. His signature terms from corpus analysis reveal that he owned the highest volume-adjusted usage of the words “head” and “desk” across the entire Enron email archive.

His calendar and meeting patterns reflect this responsibility. The “Gas Desk Head Meeting” appeared 1,950 times in his email archive, while “Power Fundamentals meeting” occurred 731 times. He also attended 215 “Executive Committee Meetings” and 150 “Power Desk Head Meetings,” along with regular sessions with the Market Risk Group. These recurring meetings formed the operational rhythm of Enron’s trading enterprise.

Gas Trading Operations

The gas trading desks under Lavorato’s oversight formed a cornerstone of Enron’s North American operations. His top correspondent was David W. Delainey with 667 emails; they were the two most senior executives in Enron Americas. The frequency of “fundamentals” as a signature term indicates his attention to the supply-and-demand analysis that informed trading positions.

Power Trading Operations

Lavorato maintained direct oversight of power trading across North America. In February 2000, Tim Heizenrader established a West Power Fundamentals website account for Lavorato, with Tim Belden copied on the message. The account credentials were sent with the note explaining access to western power market analysis.

His correspondence with Belden totaled 370 emails, making Belden his third-highest correspondent after Delainey and his executive assistant. This volume of communication reflects the importance of the West Power desk to Enron Americas’ overall performance, as well as Lavorato’s role in overseeing Belden’s operations in Portland.

Relationship with Tim Belden and California Markets

The relationship between Lavorato and Tim Belden extended beyond routine oversight. According to The Globe and Mail, reporting on Enron transcripts, Lavorato and Belden discussed avoiding jail time in August 2000 regarding the company’s actions in California’s electricity markets. The same reporting referenced a test run of aggressive tactics in Alberta the previous summer, an effort with the code name “Project Stanley.”

This conversation occurred during the period when Enron’s West Coast trading operations were implementing the strategies that became central to investigations into the California energy crisis. While Belden eventually pleaded guilty to conspiracy to commit wire fraud in connection with these activities, Lavorato was never charged. His Canadian residency placed him beyond the jurisdictional reach that brought other Enron executives into American courtrooms.

Key Correspondents

Lavorato’s email patterns reveal a network centered on trading operations management, with close connections to both his superiors and the desk heads reporting to him.

The prominence of Kimberly Hillis in his correspondence is notable. The term “hillis” was his top signature term with the highest volume-adjusted score in his lexicon. One colleague, Angela McCulloch, observed in January 2000 that “Lavo reads his e-mails about once a week twice if he’s feeling fresky,” suggesting Lavorato was more focused on trading floor operations than electronic correspondence.

Awareness of Enron’s Problems

As Enron’s financial situation deteriorated in 2001, Lavorato was among the executives who understood the severity of the company’s position. According to testimony reported by Natural Gas Intel, during a meeting about Enron’s financial picture, Lavorato “made the comment that he was glad he didn’t have a gun or he would shoot himself.” Lavorato recognized the catastrophic nature of the problems facing the company.

His email activity patterns also tell a story. Monthly volume peaked in January 2001 at 3,373 messages, then declined through mid-2001. The massive spike to 6,615 messages in November 2002 likely represents forensic collection of his mailbox rather than actual correspondence, as this date falls well after Enron’s bankruptcy filing.

Email Activity

Canadian Market Activities

Beyond California, Lavorato was deeply involved in Canadian energy market development. His circulation of the Ontario/Alberta power markets memo in January 2000 demonstrated engagement with the regulatory evolution of Canadian electricity markets. The reference to “Project Stanley” and Alberta market activities in his conversations with Belden suggests that some of the trading strategies later applied in California may have been developed or tested in Canadian markets first.

His Calgary location and Canadian citizenship would prove significant in the aftermath of Enron’s collapse. While executives based in Houston faced grand jury subpoenas and criminal charges, Lavorato’s residency in Canada placed him in a jurisdiction that did not automatically comply with American subpoena requests.

Legal Status

John Lavorato was never criminally charged in connection with Enron’s collapse. He was named as a defendant in various civil lawsuits related to Enron, but unlike colleagues such as Tim Belden, Dave Delainey, and others in the trading organization, he faced no criminal prosecution.

His position in Canada proved legally significant. Defense attorneys in Enron criminal cases requested SEC testimony from Lavorato, identifying him as “a former high-ranking Enron North America executive who was in Canada and out of reach of subpoenas.” The defense believed his testimony regarding reserve funds could be favorable to their clients. Secondary sources variously place Lavorato in Calgary during his Enron tenure and in Toronto in later references, suggesting he may have relocated within Canada after leaving the company.

Tim Belden pleaded guilty to conspiracy charges. Dave Delainey pleaded guilty to insider trading. Louise Kitchen was never charged. Physical location and citizenship, as much as the nature of one’s actions, determined who faced prosecution in the Enron aftermath.

See Also

• Tim Belden - Head of West Power Trading, reported to Lavorato
• Louise Kitchen - COO of Enron Americas under Lavorato
• Greg Whalley - President and COO of Enron, Lavorato’s superior
• California Energy Crisis - Context for West Power trading activities
• Trading Operations - Overview of Enron’s trading business

References

This article draws on 27,669 emails from John Lavorato’s archive in the Enron corpus, spanning December 10, 1999 to November 29, 2002. Secondary sources include Justice Department Enron archive exhibits, The Globe and Mail reporting on Enron transcripts, Houston Chronicle coverage of Enron legal proceedings, and Natural Gas Intel reporting on court testimony.