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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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