Corp-Ethics.com - Report: Enron feared witch hunt, Lay says

Company	Enron [Company Info]
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Date	Issue	Title
26th Apr 2006	Fraud Investigation	Enron feared witch hunt, Lay says

Report

Enron executives thought the firm was the victim of a witch hunt when stories broke about its financial problems, company founder Kenneth Lay has said.

Speaking during his second day in the witness box, Mr Lay reiterated that he thought Enron's finances were healthy.

Mr Lay has been accused of hiding the losses and lying to boost the company's share price. Mr Lay claims that former finance chief Andrew Fastow was behind the fraud.

The problems at Enron were being probed by the Wall Street Journal, which asked the company to comment on partnerships that had been set up by Mr Fastow.

Mr Lay said that he was talked out of replying to the newspaper's questions by Enron's public relations team, even though it was against his better judgement.

"My policy had always been it's better to talk to the press than not talk to the press," Mr Lay told jurors. "At least try to get your viewpoint across and let them at least consider it."

However, Enron felt that the newspaper was asking biased questions.

"We thought in fact the Wall Street Journal was on a witch hunt," Mr Lay said on Tuesday in the Houston court room. "We didn't have any information that Mr Fastow had done anything inappropriate."

The partnerships had in fact been used to hide massive losses, and the subsequent investigation and scrutiny was a key factor in Enron's collapse.

Mr Lay has been arguing that Enron's problems were as much about a sudden credit crunch and loss of investor confidence as it was about fraud.

Other Reports on Enron
Date	Issue	Company	Report
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
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'
7th Mar 2006	Fraud Investigation	Enron	Enron bosses hid massive losses
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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