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Ex-Enron chief Lay blasts prosecutors, Fastow
Reuters ^ | Tue Dec 13, 2005 3:09 PM ET | By Matt Daily

Posted on 12/13/2005 3:13:30 PM PST by TexasCajun

HOUSTON (Reuters) -

Former Enron Corp. Chairman Ken Lay on Tuesday said he was the victim of a "wave of terror" by prosecutors and blamed his former chief financial officer for the energy company's spectacular downfall.

In a preview of his defense at his criminal trial next month, Lay, in a speech to a Houston group, said he was only to blame for trusting Andrew Fastow, Enron's CFO, who has pleaded guilty to charges and will be the government's key witness against Lay and co-defendants.

"We did trust Andy Fastow, and sadly, tragically, that trust turned out to be misplaced," Lay said.

Lay, former Chief Executive Jeffrey Skilling and former Chief Accounting Officer Richard Causey will face criminal trial in January for charges brought in the aftermath of the collapse of the world's largest energy trader.

Lay also took aim at the Department of Justice's Enron Task Force, which he said launched a special investigation against him even before there was evidence of any crimes.

"In this trial, apparently unlike most criminal defense cases, defendants are trying to get the truth in, and the prosecutors, the Enron Task Force, are trying to keep it out," he said.

Lay called on former Enron employees to help him in presenting the truth about Enron. "Whether it (truth) will continue to be submerged by a wave of terror by the Enron Task Force will be determined by former Enron employees."

Enron filed for bankruptcy in 2001 after the company's use of off-balance sheet accounts to hide tens of billions of dollars in debt was revealed.

The company emerged from bankruptcy late last year and is currently disposing of its remaining assets to pay back creditors, who are expected to receive only a tiny fraction of what they are owed.

Lay faces seven charges for conspiracy and fraud.

He will face a separate trial in which he is accused of illegally using bank loans to buy Enron stock.


TOPICS: Crime/Corruption
KEYWORDS: delay; enron; fastow; kenlay; kennyboy; witchhunt
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Poor, Poor Kenny Boy!

He just sat up in that big executive office, taking those big paychecks and bonuses, all while not knowing a damn thing about what was happening.

Kenny Boy, you hurt thousands of people and cost hard-working people their jobs and savings.

1 posted on 12/13/2005 3:13:31 PM PST by TexasCajun
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To: TexasCajun
Either this guy is the world's most ignorant scumbag or he's one of it's biggest criminals. The difference is merely one of that between First and Second Degree Murder. Both deserve significant jail time, forfeiture of all assets accumulated as a result of the bad act and additional fines. I won't hold my breath.
2 posted on 12/13/2005 3:18:24 PM PST by TCats
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To: TexasCajun
"Whether it (truth) will continue to be submerged by a wave of terror by the Enron Task Force will be determined by former Enron employees."

Don't hold your breath Ken!

3 posted on 12/13/2005 3:20:02 PM PST by rocksblues (I support the war on terror)
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To: TCats

My opinion, there is no way that Ken Lay didn't know Fastow was doing something illegal. Mr. Lay choose to turn a blind eye.

Fastow, it seemed from newspaper articles, was a real piece of work -- everybody who worked for him hated him. He treated everyone (including Ken Lay) with distain.

What better way to steal millions of dollars without having to answer to anyone -- by being caustic and unapproachable.

Disgusting that Ken Lay won't take any responsibility and instead attacks Fastow.


4 posted on 12/13/2005 3:26:31 PM PST by i_dont_chat (Houston, TX)
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To: i_dont_chat
Everyone on the Board of Directors has responsibility as well.

The Board of Directors were negligent in their audit and oversight responsibilities to the stockholders.

5 posted on 12/13/2005 3:32:43 PM PST by TexasCajun
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To: rocksblues
You can bet your worthless Enron stock Andrew Fastow has already spilled plenty on Mr. Lay during negotiations on his wife's charges and sentence.
6 posted on 12/13/2005 3:37:36 PM PST by TexasCajun
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To: TexasCajun
Everyone on the Board of Directors has responsibility as well.

And the Board is elected by majority stockholders. I have no empathy for the majority stockholders.

I do think it is reprehensible that the little people and the workers were mislead making their investment and retirement's fund worth nothing.

7 posted on 12/13/2005 3:42:54 PM PST by rocksblues (I support the war on terror)
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To: TexasCajun

One of those boys can come off my $1600+ I invested in Enron common stock or I'm liable to invest another $1000 in a desperate, amoral crack head. "Dirty deed, done dirt cheap."


8 posted on 12/13/2005 3:44:51 PM PST by HankReardon
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To: i_dont_chat

Ken Lay made $140 million in his last year at Enron. How the heck can you be expected to pay attention to something as mundane as "the books" when you're only making $400,000 a day, every day of the year? I remember reading that in Enron's heyday, Lay went to his high school reunion in a small town in Missouri; good solid people who work hard and make $30-40K a year. Lay was so out of touch his first words to his classmates were purportedly that he had put his wife on a multi-million redecorating budget for their nuew house and she couldn't keep within budget!! That this boob was elected to be head of a major corporation was the biggest crime of all.


9 posted on 12/13/2005 3:48:10 PM PST by laconic
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To: laconic

Fastow had a huge mansion built in Florida. In the state of Florida bankruptcies exempt real estate.


10 posted on 12/13/2005 3:49:59 PM PST by HankReardon
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To: TexasCajun

He just sat up in that big executive office, taking those big paychecks and bonuses, all while not knowing a damn thing about what was happening.

Kenny Boy, you hurt thousands of people and cost hard-working people their jobs and savings.

Funny, that's the same argument the Dems are making about Bush. That he just sat in the Oval Office while the CIA and the VP argued for going to war in Iraq based on WMD that didn't exist, and took their word for it. Guess Bush is guilty too, according to your logic.


11 posted on 12/13/2005 3:50:15 PM PST by flaglady47
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To: flaglady47

Bush would be guilty of what? WMD's have been found in Iraq. The Saddam Iraqi government and Al Qaeda, Hammas and other terrorist organizations were extensively connected.


12 posted on 12/13/2005 3:52:35 PM PST by HankReardon
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To: HankReardon

"Bush would be guilty of what?"

Read my comment again. You missed the point.


13 posted on 12/13/2005 3:56:09 PM PST by flaglady47
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To: HankReardon

I believe that as part of the deal with prosecutors, Fastow had to yield that house as well as the net assets of the "Fastow Foundation", stolen money that showed his big-hearted charity. He IS cooperating with the prosecutors and it would appear that he'll be the prime witness against the witless Ken Lay.


14 posted on 12/13/2005 3:58:42 PM PST by laconic
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To: TexasCajun
Kenny Boy, you hurt thousands of people and cost hard-working people their jobs and savings.

I've a blood relative who lost nearly 1/4 million in enron stock.

15 posted on 12/13/2005 4:05:15 PM PST by Lester Moore (The headwaters of the islamic river of death and hate are in Saudi Arabia.)
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To: flaglady47

Yeah, I kinda know what you were getting out, it's a very bad analogy though. There is no doubt fiscal crimes were committed at Enron, there is no need for a political oraganization to wage a propaganda campaign of lies to cause the public to believe it happened when it didn't.


16 posted on 12/13/2005 4:07:16 PM PST by HankReardon
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To: Lester Moore

Maybe your blood relative will go half with me on a few desperate crack heads.


17 posted on 12/13/2005 4:08:40 PM PST by HankReardon
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To: TexasCajun

So when does the pardon come?


18 posted on 12/13/2005 4:09:04 PM PST by WhiteGuy (Vote for gridlock)
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To: HankReardon

"There is no doubt fiscal crimes were committed at Enron"

Yes, but there is doubt as to whether Ken Lay knew about what Fastow was doing. And hence the trial. But I won't pre-condemn Lay as to what he knew and when he knew it until the truth hopefully comes out. That's what I am saying.


19 posted on 12/13/2005 4:12:45 PM PST by flaglady47
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To: flaglady47

But we know as facts WMD's and programs for WMD's in Iraq and Iraq/terrorist connections did exist. Just a bad analogy. Nothing for the CIA, Cheney or Bush to be guilty of.


20 posted on 12/13/2005 4:15:15 PM PST by HankReardon
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