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|9th Mar 2006||Fraud Investigation||Lay 'lied about Enron finances'|
|Enron's former boss lied about the state of the firm's finances months before its collapse, the company's ex-finance chief has testified.
Andrew Fastow said Ken Lay claimed that Enron's finances were robust in a interview in August 2001 despite him being aware of mounting problems.
"It was what Mr Lay was saying. It was a lie," Mr Fastow - chief prosecution witness - told jurors in Houston.
Ken Lay and ex-colleague Jeffrey Skilling deny 35 counts of fraud.
They are accused of making false statements to the media and staff about Enron's finances prior to its spectacular collapse in October 2001 but deny any wrongdoing.
In his second day of testimony, Mr Fastow said Mr Lay publicly claimed that Enron was financially sound even though Mr Fastow had told him that Enron would have to write-down the value of its assets by $1.2bn.
Asked about an interview given by Mr Lay to Business Week in August 2001 - in which Mr Lay claimed that the firm was "probably in the best shape that it has ever been" - Mr Fastow said this was not true.
"I think most of the statements in there are false," he said.
"It was what Mr Lay was saying, what the company was saying. I was trying to keep the deception up as well."
Mr Fastow said he recommended Enron undergo a major restructuring but despite a meeting with advisor Goldman Sachs, nothing came of it.
Defence lawyers for Mr Skilling - Enron's former chief executive - said Mr Fastow had showed "insatiable greed" in his dealings with Enron, having received huge kickbacks from the firm.
Mr Fastow's wife served a year in prison for submitting a tax return which did not show the income kickbacks intended for her husband.
"I believe I was extremely greedy," Mr Fastow admitted.
"I lost my moral compass and I have done terrible things that I very much regret."
|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'|
|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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|Severn Trent Water||Other Issue||Severn Trent provided false information|
|Thames Water||Other Issue||Ofwat to fine Thames Water £12m|
|Powergen||Questionable Practice||Powergen fined over unfair policy|
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