Daniel Scotto

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Daniel "Dan" Scotto is an American financial analyst. In August 2001, Scotto was the first analyst to recommend the sale of all Enron securities, including its common stock. He was also the first to divulge publicly the magnitude of Enron's financial leverage and lack of corporate ethics, and to question the reliability of Enron's reported earnings results, despite those results being audited by Arthur Andersen. For nine consecutive years, Scotto ranked “First Team” in Institutional Investor Magazine ALL-AMERICA RESEARCH TEAM survey. Based on his consistent ability to assess risk well ahead of the market resulted in total returns on assets through capital appreciation and income which exceeded all Wall Street conventions — the most spectacular of which was his prediction of Enron’s failure five months before the company was forced into bankruptcy.

Dan Scotto began his career at Standard & Poor's (S&P) in the Credit rating agencies division, with primary analytical responsibilities for regulated industries, where the rating criteria used to evaluate energy companies was developed by Mr. Scotto is still in use today and is considered the industry standard. When Scotto moved to L. F. Rothschild as Director of Corporate Bond Research and the Senior Utility Analyst, he developed a multi-industry Risk Assessment Template which is still used by S&P today. During the 1987 market crash, he succeeded in forming the Hampton Utility Fund — acting as a member of the Board and its Senior Investment Strategist. Scotto was the first to combine both high-grade and high-yield research at DLJ. Bear Stearns recruited Scotto to form a consolidated high-grade, high-yield and emerging market research effort. At DLJ, it became apparent that the fixed-income risk evaluation approach could readily be transferred to stock selection and valuations thereby achieving above average rates-of-return.

The unique debt/equity approach to risk assessment has a demonstrated record of success, especially when coupled with a strong analytical research approach. In 2000, his models and understanding of the California regulatory climate triggered a “Sale” signal of all California utilities. Mr. Scotto’s “Sell” recommendation preceded the California electricity crisis seven months ahead of the market. The unprecedented action resulted in significant profits for those investors who followed Mr. Scotto’s bold advice regarding the Western Energy Crisis of 2000 and 2001.

Mr. Scotto’s opinions and forecasts frequently appear in The Wall Street Journal, New York Times, CNBC, Forbes, and Public Utility Fortnightly and he is often invited as a featured speaker at various conferences. Mr.Scotto has been interviewed by Matt Lauer on the Today Show aired on NBC regarding his bold decision to place a negative rating on Enron.

Scotto also has been involved in several major investment banking projects, having served as the Chief Regulatory Negotiator during New York State’s acquisition of the Long Island Lighting Company(LILCO) by the Long Island Power Authority (LIPA). Other investment banking activities include: the reorganization of Pacific Gas & Electric, Western Resources, Tucson Electric, representing El Paso Electric sale-lease back bonds SLOBs and Northwewestern Corporation. In 1998 and 1999 Mr. Scotto advised Presidential Candidate Al Gore on expanding the role of “green energy” as part of his National Energy campaign strategy. Having a 15-year relationship with Texas regulators, in 2001 the Bush Administration called upon Mr. Scotto to comment on California’s energy crisis and the current status of U.S. energy supply.

He has also participated in the NANO-Economic curriculum for the University at Albany Lectured at Princeton University on the 10 Ways to Avoid the Next Enron, and has lectured at Columbia University and Yale. He has also made presentations on: ”Ethics in Corporate America” at the National Attorney’s Conference Southeast State Treasures Association: Budgetary Impact of Deregulation National Conference of State Legislators: Utility Deregulation Securitization Report (February 1997), included as Draft Texas legislation Texas Utilities Electric: Financial Integrity Testimony Long Island Lighting Company: Financial Integrity Testimony

Daniel Scotto is now President and Chief Investment Officer of Whitehall Financial Advisors. He specializes in the fields of Green energy and Alternative Energy, Future energy development. He is joined by Colin McCall, a former airline pilot and who is now Managing Director of Whitehall Financial Advisors.