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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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