Santiago Mengalista, alias Lorenzo Mengalli, alias Pietro Lopez, was arrested and charged with the murders of Itzic Neiman and David Urbanski, a New York State trooper. He was also charged with the kidnapping and attempted murder of Kerri King and Steve Monteith. He was placed in solitary confinement at Attica Correctional Facility, a maximum security prison located in the New York State town of Attica. In a plea bargain to avoid the death penalty, he sang like a bird. Among other things, his information led the F.B.I. to conduct a raid on the Laredo, Texas hacienda of Alejandro Salazar. The interrogation of Salazar led them to Sandra Schafer’s body in the remote Mexican desert area west of Salinas Hidalgo. The body was exhumed and returned to Houston for a proper burial.
When they learned of Schafer’s fate, Kerri King and Steve Monteith took particular delight in making Schafer’s information package available to the F.B.I., the S.E.C., and the I.R.S.
On the morning of Tuesday, May 27, 2002, the F.B.I. conducted massive and simultaneous raids on the Houston offices of Enerco and Benjamin, Alexander & Gabriel, LLP. Kenneth Layton, Jeffrey Wheeler, Andrew Speers, and Peter Tavaris were arrested and subjected to humiliating and well publicized perp walks. Marc Jacobs, a senior partner in Benjamin, Alexander & Gabriel, experienced a similar fate.
The publicity generated by the raids and subsequent discoveries resulted in a dramatic and spectacular plunge in the value of Enerco stock, and the obliteration of the personal fortunes of thousands of investors. Enerco eventually declared Chapter 11 bankruptcy. The fall from grace of Benjamin, Alexander & Gabriel resulted in the loss of much of its client base. The firm quickly descended into bankruptcy.
In a voluminous indictment, Ken Layton was charged with 17 counts of securities fraud, wire fraud, and making false and misleading statements. He was further charged with complicity in the murders of Sandra Schafer, Itzic Neiman, David Urbanski, and Wilhelm Lentz. Amazingly, his attorneys succeeded in negotiating his temporary freedom by posting $10,000,000 bail. He committed suicide by shooting himself in the head in his Houston mansion. His subsequent conviction was vacated because of his death. He had a negative net worth at the time of his death.
Jeffrey Wheeler was tried and convicted of multiple felony charges relating to the financial collapse of Enerco. He was also tried and convicted for complicity in the deaths of Sandra Schafer, Itzic Neiman, David Urbanski, and Wilhelm Lentz. He was sentenced to life in prison, without possibility of parole.
Andrew Speers was also charged and eventually convicted of multiple felony charges related to the downfall of Enerco. He was sentenced to serve eight years in the United States Penitentiary at Beaumont, Texas.
Peter Tavaris was arrested, charged, and convicted of breaking and entering the New York offices Iacardi & Sons. He was sentenced to serve three years in United States Penitentiary near Pollock, Louisiana. His shares of Enerco are worthless. His dream of wealth and power is only a memory.
Walter Deakes, A.K.A. The Deacon, is now penniless. He lives with his wife in a modest rented home in Virginia. He works as a part time consultant for an obscure New York hedge fund.
Billie “The Kid” Dukes was one of the lucky ones. Although his shares of Enerco impoverished him, he was immediately hired as a trader by Bear Sterns in New York. He is still unmarried and still an eligible bachelor. His financial nightmare is yet to come.
Acting on the testimony provided by Jeffrey Wheeler, Sergei and Dmitri Tarasoz, A.K.A. The Boys from Belarus, were arrested in Munich by agents of Interpol. They were extradited to Switzerland and tried and convicted of the murder of Wilhelm Lentz. The search for Lentz’s body continues.
Christine Stewart finally made full partner at the Toronto law firm of Anderson, McPherson and White. Her career took on meteoric proportions when she married Todd White, the son of one of the firm’s founders. She is listed in Toronto’s Who’s Who as one of the city’s most respected socialites. The happy couple have no immediate plans for a family.
Jamie Stewart is still partying.
Andrea Dennis still lives alone in her lovely old home in Glen Cove, Long Island. She is deeply grateful to Kerri King, who convinced her to sell her shares of Enerco early. The proceeds of the sale made her a small fortune. The younger of her two daughters, a Wharton Business graduate, is now a successful trader with Iacardi & Sons in New York.
Mike and Karen King continue to say a silent prayer each day for the pleasure of living free from the torment of the fruits of Jim Servito’s crimes.
The Trustee in the bankruptcy of Enerco cleverly spun off Iacardi & Sons from a long list of Enerco assets. It was purchased by a syndicate, consisting primarily of current and former employees. Still an enormously profitable enterprise, Iacardi is honoring, in every respect, the commitment made by its former president, Kerri King to provide financial assistance to the families of its employees who died in the terrorist attacks of September 11, 2001.