Corp-Ethics.com - Report: Key Enron witness 'duped bosses'

Company	Enron [Company Info]
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Date	Issue	Title
14th Mar 2006	Fraud Investigation	Key Enron witness 'duped bosses'

Report

Defence lawyers acting for former Enron boss Kenneth Lay have accused a chief witness against him of helping to bring about the US energy giant's collapse.

Former finance chief Andrew Fastow lied to his bosses at Enron while stealing millions of dollars from the bankrupt firm, Mr Lay's defence attorney said.

Mr Fastow was facing cross-examination after giving evidence against Mr Lay and fellow Enron boss Jeffery Skilling.

Defence lawyer Andrew Ramsey told a court in Houston that Mr Fastow duped his bosses into thinking Enron was financially strong, while at the same time sowing the seeds of the company's demise.

"You were very proficient at looking him [Mr Lay] right straight in the face and telling him you were loyal and he could count on you, but you knew in your heart you were stealing from the house," Mr Ramsey said.

"You were successful in your lying and your deceit from 1997 all the way up to 2001."

Mr Fastow, who has pleaded guilty to fraud charges and agreed to help prosecutors in exchange for a reduced 10-year jail sentence, admitted that he had "fooled" staff at Enron.

Mr Lay had claimed that Enron's finances were robust in a Business Week interview in August 2001, despite being aware of mounting problems, prosecutors said.

"It was what Mr Lay was saying. It was a lie," Mr Fastow told jurors.

However, Mr Lay's lawyers attempted to discredit Mr Fastow's evidence, arguing that he had only decided to co-operate with prosecutors after realising he faced "200 or 300 years in jail".

"Can you think of one reason why your testimony should be deemed credible," Mr Ramsey said on Monday.

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
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
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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