Ken Lay's Testimony
Ends With
One Last Testy
Exchange
By AP from the WSJ
Online, May 2, 2006
HOUSTON -- Enron Corp.
Chairman Kenneth Lay wrapped up six days on the witness stand Tuesday by saying
that the company's collapse was "the most painful thing in my life."
"I loved Enron very much," Mr. Lay told jurors in his federal fraud trial.
"I think we built a great company. I think the most painful thing in my
life was watching Enron finally have to go into bankruptcy."
His final day of testimony ended with one last, testy exchange with federal
prosecutor John Hueston, who took aim at Mr. Lay's claim earlier in the trial
that he takes responsibility for what happens at Enron, but not for any criminal
activity.
"You have a long list of people to blame for Enron's collapse, sir, and it gets
longer and longer as you testify," Mr. Hueston said. "And your list of
people to blame and events to blame did not include yourself, did it, sir?"
Mr. Lay replied: "I did everything I could humanly do during this time.
Did I make mistakes? I'm sure I did, Mr. Hueston. I had to make
real-time [Kenneth Lay] decisions based on the information I had at the time."
Mr. Lay and former Enron Chief
Executive Jeffrey Skilling are accused of repeatedly lying to investors and
employees about Enron's prowess when they allegedly knew the company's success
stemmed from accounting tricks that hid bad news and inflated profits.
The two men counter that no fraud occurred at Enron other than that committed by
a few executives who stole money through secret side deals. They attribute
Enron's descent into bankruptcy to a combination of bad publicity and lost
market confidence. Mr. Skilling testified earlier.
Four character witnesses, including Houston Astros owner Drayton McLane Jr.,
were expected to follow Mr. Lay to the witness stand.
Aiming to undercut a prosecution argument, Mr. Lay had testified Tuesday that he
used about $13 million of personal assets other than Enron shares to meet bank
margin calls and other financial obligations in 2001.
Mr. Hueston had sought to show that Mr. Lay passed over other choices --
including tens of millions of dollars in real estate, stock accounts and other
lines of credit -- and instead sold $70 million of Enron shares to meet the
margin calls.
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