"Given all the talk about potential bankruptcy, we are concerned that PG&E used a stealth move to shield assets," Mr. Lockyer said.

Given that Enron is based in Houston, the possibility exists that executives could use the exemption to shield assets if they filed for bankruptcy.

Generally, a special purpose entity is created for each project, thereby shielding other assets owned by a project sponsor from the detrimental effects of a project failure.

But the recent bankruptcy of Raytech Inc. is raising new questions about whether the bankruptcy law can be used to shield corporate assets from asbestos claimants.

His amendment would have limited the use of the trusts to shield assets only up to $125,000.

It can also be used to shield assets from matrimonial division in case of divorce of the beneficiary.

The order is intended to stop New Jersey officials from using blind trusts to shield assets that would otherwise be subject to conflict-of-interest scrutiny.

The possibility exists that Enron's top executives could use the Texas exemption to shield assets if they filed for bankruptcy, lawyers said.

About 500 New York City residents qualify each year for Medicaid after shielding assets in trusts, which is allowed by Federal law.

Soon after, he was mentioned by Senator Herb Kohl, Democrat of Wisconsin, as a deadbeat debtor who had shielded assets from creditors.