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Fiel a Verdad
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- Dec 20, 2001
- Posts
- 15,135
deserves his own thread. his testimony began yesterday.
Folksy Lay Opens Up to the Jury
By ALEXEI BARRIONUEVO and SIMON ROMERO
New York Times
Published: April 25, 2006
HOUSTON, April 24 — With a folksy preacher style that alternated between country charm and righteous indignation, Kenneth L. Lay, Enron's former chief executive, took the stand on Monday to argue that he had nothing to do with the crimes that helped cause the collapse of the company he founded.
Mr. Lay, 64, offered a vigorous denial of the federal charges against him, particularly those accusing him of conspiring to defraud investors after he returned as Enron's chief executive in August 2001 following the abrupt resignation of Jeffrey K. Skilling, his co-defendant in the trial.
"The last thing I would do as C.E.O. is step in and pick up the leadership of a conspiracy," he said, his voice rising.
For Mr. Lay, his first day of testimony was a deeply personal presentation by a man who had once been a civic leader in Houston, where business and politics are closely entwined, and who befriended three presidents of the United States and leaders throughout the world with his courtly manner and Horatio Alger story.
Speaking slowly and occasionally stabbing the air with his right hand, he portrayed himself as a pious family man with humble heartland origins.
"I am very, very anxious and trying to do all that I can to get the truth out about Enron," he said.
Mr. Lay told the jury he was proud of the wealth he enjoyed after building Enron into what appeared at the time to be one of the nation's most successful companies, adding that he used some of that money to assist his 5 children, 12 grandchildren, and 96-year-old father-in-law.
But since Enron went into bankruptcy at the end of 2001, becoming the embodiment of the era of corporate scandals that followed, Mr. Lay has been ruined financially and faces decades in prison if he is convicted on any of the six counts of fraud and conspiracy against him.
"I guess you could say," Mr. Lay said, "in the last few years I've achieved the American nightmare."
Mr. Lay, an experienced public speaker, sought to portray himself as anything but the greedy, image-obsessed corporate chieftain that has become his enduring label since Enron's fall. Trying to humanize himself, Mr. Lay, the son of a Baptist preacher from Missouri, turned several times to his wife, Linda, in the front row of the spectator's gallery, pointing out how she had been in the courtroom every day, calling her "very supportive" and a "strong foundation for me."
Indeed, Mr. Lay seemed to open up his life to the 12 jurors who could send him to prison for a term that could easily last the rest of his life. He made ready references to his faith in God and noted that he met Linda, whom he married 24 years ago, when she was a single mother working as his secretary at a Florida natural gas company.
And when his lawyer, George McCall Secrest Jr., asked Mr. Lay if he was perfect, Mr. Lay said no. "Just ask my wife and five children," he added.
As he has done before, Mr. Lay laid the blame for Enron's problems at the door of Andrew S. Fastow, the former chief financial officer who testified against him after pleading guilty in a deal with the government.
"It all begins with the deceit of Andy Fastow," Mr. Lay said, explaining that his deepest regret was hiring and promoting Mr. Fastow, who did a "tremendously brilliant" job of hiding his crimes from his superiors at Enron.
"I've said before, I accept full responsibility for everything that happened at Enron," Mr. Lay testified. "Having said that, there's no way I could take responsibility for the criminal conduct that I didn't know about."
At every turn, Mr. Lay was quick to brand Mr. Fastow a liar and a crook. He denied that Mr. Fastow privately presented him with a list of problem assets that needed to be urgently written down just days after Mr. Skilling resigned from the company. Mr. Fastow testified that the list included billions of dollars in overvalued international assets.
"That did not happen," Mr. Lay said in a strong voice. "Period."
Mr. Lay's appearance drew a handful of former Enron employees to the courtroom. He also attracted some supporters, including Representative Sheila Jackson Lee, Democrat of Houston, who together with other politicians in the city received support early in her career from Mr. Lay, a prominent Republican.
It was the second appearance in the courtroom for Ms. Jackson Lee, perhaps the most prominent African-American politician in Texas, who also attended a trial day in January.
Folksy Lay Opens Up to the Jury
By ALEXEI BARRIONUEVO and SIMON ROMERO
New York Times
Published: April 25, 2006
HOUSTON, April 24 — With a folksy preacher style that alternated between country charm and righteous indignation, Kenneth L. Lay, Enron's former chief executive, took the stand on Monday to argue that he had nothing to do with the crimes that helped cause the collapse of the company he founded.
Mr. Lay, 64, offered a vigorous denial of the federal charges against him, particularly those accusing him of conspiring to defraud investors after he returned as Enron's chief executive in August 2001 following the abrupt resignation of Jeffrey K. Skilling, his co-defendant in the trial.
"The last thing I would do as C.E.O. is step in and pick up the leadership of a conspiracy," he said, his voice rising.
For Mr. Lay, his first day of testimony was a deeply personal presentation by a man who had once been a civic leader in Houston, where business and politics are closely entwined, and who befriended three presidents of the United States and leaders throughout the world with his courtly manner and Horatio Alger story.
Speaking slowly and occasionally stabbing the air with his right hand, he portrayed himself as a pious family man with humble heartland origins.
"I am very, very anxious and trying to do all that I can to get the truth out about Enron," he said.
Mr. Lay told the jury he was proud of the wealth he enjoyed after building Enron into what appeared at the time to be one of the nation's most successful companies, adding that he used some of that money to assist his 5 children, 12 grandchildren, and 96-year-old father-in-law.
But since Enron went into bankruptcy at the end of 2001, becoming the embodiment of the era of corporate scandals that followed, Mr. Lay has been ruined financially and faces decades in prison if he is convicted on any of the six counts of fraud and conspiracy against him.
"I guess you could say," Mr. Lay said, "in the last few years I've achieved the American nightmare."
Mr. Lay, an experienced public speaker, sought to portray himself as anything but the greedy, image-obsessed corporate chieftain that has become his enduring label since Enron's fall. Trying to humanize himself, Mr. Lay, the son of a Baptist preacher from Missouri, turned several times to his wife, Linda, in the front row of the spectator's gallery, pointing out how she had been in the courtroom every day, calling her "very supportive" and a "strong foundation for me."
Indeed, Mr. Lay seemed to open up his life to the 12 jurors who could send him to prison for a term that could easily last the rest of his life. He made ready references to his faith in God and noted that he met Linda, whom he married 24 years ago, when she was a single mother working as his secretary at a Florida natural gas company.
And when his lawyer, George McCall Secrest Jr., asked Mr. Lay if he was perfect, Mr. Lay said no. "Just ask my wife and five children," he added.
As he has done before, Mr. Lay laid the blame for Enron's problems at the door of Andrew S. Fastow, the former chief financial officer who testified against him after pleading guilty in a deal with the government.
"It all begins with the deceit of Andy Fastow," Mr. Lay said, explaining that his deepest regret was hiring and promoting Mr. Fastow, who did a "tremendously brilliant" job of hiding his crimes from his superiors at Enron.
"I've said before, I accept full responsibility for everything that happened at Enron," Mr. Lay testified. "Having said that, there's no way I could take responsibility for the criminal conduct that I didn't know about."
At every turn, Mr. Lay was quick to brand Mr. Fastow a liar and a crook. He denied that Mr. Fastow privately presented him with a list of problem assets that needed to be urgently written down just days after Mr. Skilling resigned from the company. Mr. Fastow testified that the list included billions of dollars in overvalued international assets.
"That did not happen," Mr. Lay said in a strong voice. "Period."
Mr. Lay's appearance drew a handful of former Enron employees to the courtroom. He also attracted some supporters, including Representative Sheila Jackson Lee, Democrat of Houston, who together with other politicians in the city received support early in her career from Mr. Lay, a prominent Republican.
It was the second appearance in the courtroom for Ms. Jackson Lee, perhaps the most prominent African-American politician in Texas, who also attended a trial day in January.