Tha changes in law revolved primarily around others involved in the process of corporate finance, investment and advice, and those who are between the public and the corporation. What Lay is charged with regarding his banking and loan guaranty practices have been illegal for a long time. Making false statements on loan application or execution documents is fraud. Of course, fraud is something with which those Enron buccaners are well acquainted.
All my life, I've always heard "ignorance of the law is no defense." Hasn't everybody?
And yet, Kenlay tells the judge today that he "doesn't walk around with a Regulation II under his arm" to know what he can and can't buy with his loan money.
Aaacck. He was CEO of a "major" corporation and doesn't know this basic rule? That's sort of like borrowing money for a down payment on a house!
Everyone knows you don't put up stock for collateral on a loan and then use the proceeds to buy more stock. Your loan collateral could be worthless in an instant and your loan called in! In fact, that's exactly what did happen.
And get this - the defense lawyer is saying, it's just a regulation, breaking it isn't a crime! Yikey yike yikes, these people try my patience.