Reply #25: A 2nd Criminal Trial Begins for Former Enron Chief - Kenny Boy

[UpInArms]

http://www.nytimes.com/2006/05/19/business/businessspecial3/19enron.html?ex=1305691200&en=505af9d4e369fcf3&ei=5088&partner=rssnyt&emc=rss

HOUSTON, May 18 — As a jury spent its first full day deliberating the fates of the former Enron chief executives, Kenneth L. Lay and Jeffrey K. Skilling, a second criminal trial began yesterday, with prosecutors accusing Mr. Lay of repeatedly lying to banks about how he would use $75 million in loans.

Using testimony of a bank loan officer, an investment adviser and a personal assistant who still works for Mr. Lay, prosecutors tried to show that he borrowed millions of dollars and violated federal banking regulations by investing much of the money in stocks after he signed documents saying he would not do so.

He did so "not just a few times, but repeatedly and time and again," the prosecutor, Robb Adkins, said in brief opening arguments.

In an unusual compromise, Judge Simeon T. Lake III broke off these four charges from the main Enron case after Mr. Lay's defense team sought to have the entire case against him separated from Mr. Skilling's. Last year, Mr. Lay waived his right to a jury trial on the bank charges, in part because of the technical nature of banking statutes, meaning the case will be decided by the judge. The charges — one of bank fraud and three of lying to banks — are based on a cache of prosaic loan documents and personal financial records from the early 1990's to 2001. The charges are not related to the fraud and conspiracy charges Mr. Lay faces in the Enron case with his co-defendant, Mr. Skilling.

...more...