Corp-Ethics.com - Report: Skilling defends Enron share sale

Company	Enron [Company Info]
	Track this Company (an email will be sent to you everytime a report is filed about this company)

Date	Issue	Title
18th Apr 2006	Fraud Investigation	Skilling defends Enron share sale

Report

Former Enron boss Jeffrey Skilling has defended his sale of $63m in Enron stock before the company collapsed, saying he has "nothing to hide."

He insisted the sales, which raised $63m (£35.6m) in 2000 and 2001, were proper and he had no idea an internal probe into Enron's accounts had begun.

As the 12th week of the fraud and conspiracy trial began in Houston, prosecutor Sean Berkowitz tried to point out potential inconsistencies in Mr Skilling's defence testimony.

"I have nothing to hide, Mr Berkowitz," Mr Skilling said.

"I don't think it's a question of tailoring to your testimony. I will respond to your questions to the best of my ability."

But Mr Berkowitz challenged Mr Skilling over his 2000 and 2001 sale of shares in the energy trading giant.

Mr Berkowitz accused Mr Skilling of discussing a whistle-blower's note with Mr Lay about possible accounting fraud at the firm shortly before he sold 200,000 of his shares in the firm in 2001.

But Mr Skilling denied the claims, saying: "I didn't hear about it, the note, until it was published in the newspapers that following January."

Instead, Mr Skilling stuck to his testimony that he did not remember placing an order to sell the shares on 6 September 2001 - less than a month after his resignation.

That sale was delayed, and Mr Skilling later sold off 500,000 shares on 17 September - the first day the markets were opened after the World Trade Center attacks.

Mr Skilling contended that he opted to sell more shares as he was worried about the effect of the terrorist attacks on the stock market, not because he knew Enron was in trouble as the prosecution has alleged.

He also denied allegations that he advised his ex-wife, Susan Skilling, and then girlfriend Rebecca Carter to sell their shares in the firm.

Mr Skilling was also quizzed over deals Enron undertook with partnerships operated by former chief financial officer Andrew Fastow.

Mr Fastow, who is now a prosecution witness, claims the firm used the deals to unload poorly performing assets and hide debts.

But Mr Skilling said he never saw any paperwork pertaining to the deals, adding he did not believe the deals would have propped up Enron's finances.

His defence team is contending that he was misled by dishonest executives like Mr Fastow, and that the company's collapse was caused by panic-selling from investors rather than serious accounting 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
26th Apr 2006	Fraud Investigation	Enron	Enron feared witch hunt, Lay says
24th Apr 2006	Fraud Investigation	Enron	Lay 'devastated' by Enron failure
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

Related Reports from the Utilities Industry
Company	Issue	Report
Powergen	Questionable Practice	Powergen fined over unfair policy
National Grid	Other Issue	Threat of $20m fine for Blackouts
Westar Energy	Fraud Investigation	Ex-Westar CEO Wittig Gets 18-Year Sentence
Anglian Water Group	Questionable Practice	AWG jobs go despite profits boost
Severn Trent Water	Other Issue	Severn Trent Water to repay customers