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|7th Mar 2006||Fraud Investigation||Enron bosses hid massive losses|
|Enron's former chief financial officer has testified to setting up partnerships designed to help the firm hide losses of millions of dollars.
Andrew Fastow took the witness stand at the trial of ex-Enron bosses Jeffrey Skilling and Ken Lay.
The two deny multiple charges of conspiracy, fraud and insider trading linked to the collapse of the US energy firm in December 2001.
Mr Fastow has already pleaded guilty to conspiracy and faces 10 years in jail.
His intimate knowledge of Enron's finances make him a key witness for the prosecution.
Mr Fastow said the "LJM" partnerships - the initials are those of his wife and children - were used to buy poorly performing investments from Enron and disguise losses from investors and analysts.
"We were doing this to inflate our earnings, and I don't think we wanted to show people what we were doing," he told the court.
He said Mr Lay and Mr Skilling signed off the deals and encouraged his activities.
He described how Mr Skilling urged him to use one of the partnerships to buy a minority stake in a Brazilian power plant owned by Enron because Enron's South American unit was struggling to meet its earnings target.
Mr Fastow was rewarded with lucrative fees for handling the partnerships, but he said money was not his only motivation.
"I would look like a hero," he said, for helping Enron executives "make income targets Wall Street was setting".
Mr Lay and Mr Skilling have denied they took part in any crimes and blame Mr Fastow for Enron's collapse.
Their defence team maintains that many of the former Enron employees that have come forward as prosecution witnesses have confessed to crimes they did not commit, in the hope of getting reduced prison sentences.
|Other Reports on Enron|
|26th Sep 2006||Fraud Investigation||Enron||Fastow gets six-year term|
|13th Aug 2006||Fraud Investigation||Enron||Prosecutors raise Enron boss fine|
|25th May 2006||Fraud Investigation||Enron||Lay and Skilling guilty|
|15th May 2006||Fraud Investigation||Enron||Enron bosses 'stole to pump egos'|
|11th May 2006||Fraud Investigation||Enron||Judge deals blow to Enron accused|
|26th Apr 2006||Fraud Investigation||Enron||Enron feared witch hunt, Lay says|
|24th Apr 2006||Fraud Investigation||Enron||Lay 'devastated' by Enron failure|
|18th Apr 2006||Fraud Investigation||Enron||Skilling defends Enron share sale|
|13th Apr 2006||Fraud Investigation||Enron||Skilling slams Enron prosecutors|
|12th Apr 2006||Fraud Investigation||Enron||Enron 'held no cookie jar fund'|
|11th Apr 2006||Questionable Practice||Enron||Skilling denies cover-up at Enron|
|10th Apr 2006||Fraud Investigation||Enron||I'm innocent says ex-Enron chief|
|3rd Apr 2006||Fraud Investigation||Enron||Key Enron witness 'lied in court'|
|22nd Mar 2006||Fraud Investigation||Enron||Enron treasurer tells of 'lies'|
|16th Mar 2006||Fraud Investigation||Enron||Enron whistleblower condemns Lay|
|14th Mar 2006||Fraud Investigation||Enron||Key Enron witness 'duped bosses'|
|9th Mar 2006||Fraud Investigation||Enron||Lay 'lied about Enron finances'|
|1st Mar 2006||Fraud Investigation||Enron||Enron 'pretty fast and loose with its rules'|
|27th Feb 2006||Fraud Investigation||Enron||Enron money man 'raided reserves'|
|13th May 2005||Fraud Investigation||Enron||Former Enron executive sentenced|
|9th Jan 2005||Fraud Investigation||Enron||Enron bosses agree $168m payout|
|3rd Nov 2004||Fraud Investigation||Enron||Convictions in Enron fraud trial|
|28th Jun 2004||Other Issue||Enron||Enron ex-boss breaks his silence|
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