Enron witness: Skilling said 'they're on to us'

[cal04]

Updated: 7:52 p.m. ET March 2, 2006
HOUSTON - Former Enron Corp. Chief Executive Jeffrey Skilling told other top executives “they’re on to us,” when a small analyst firm produced a research note critical of the company’s sales to partnerships run by then-Chief Financial Officer Andrew Fastow, a former top executive testified in a bombshell revelation Thursday.

Minutes before that, Skilling said at the May 2001 meeting — attended by company founder Kenneth Lay — that he had “brought Andy here” to talk about those partnerships, called LJM1 and LJM2.

“Fastow said, ’LJM is a good deal for me,”’ Kevin Hannon, then chief operating officer of the company’s flailing broadband unit, told jurors in the fraud and conspiracy trial of Lay and Skilling.
“As I remember, (Fastow’s comment) was met by stunned silence,” Hannon said.

“Did Mr. Skilling say anything?” prosecutor Cliff Stricklin asked.

“Yes. He said, ’They’re on to us,”’ Hannon said. “It seemed to indicate the investment community was beginning to understand how Enron made money.” Hannon’s statements — in the last 10 minutes of testimony Thursday — were a potentially devastating blow to the defendants. Their lawyers have maintained that Lay and Skilling did nothing wrong and there was no fraud at Enron besides the theft of money by Fastow and two other former executives.

But Hannon’s inside view of the company’s executive policy meeting appeared to directly challenge the defendants’ insistence that the LJM partnerships were proper and received appropriate approvals from lawyers and accountants as well as Enron’s board.



http://www.msnbc.msn.com/id/11642404/

[bluestateguy]

1. Skilling should swing from a rope

Seriously. I'm sick and tired of these corporate conservative white men always getting a slap on the wrist or a year at the Club Fed for their acts of economic terrorism.

[salin]

2. Each day this looks worse for the Enron thiefs

Just too bad that it took so long to go to trial (very complicated case to prove) - and the public attention has veered so far away from the season of multiple major corporate implosions that the newsworthyness (as in this is a road map to how other huge corp problems - many which still exist... happen.) I hope that we keep these items, as they come out, kicked long enough for a good number of folks to read and keep track. I believe that what we learn about Enron is a huge roadmap that should be understood and followed.

[pacalo]

3. I wonder if any of the 21,000 Enron employees

who lost $1.5 billion total of their savings will be testifying. That should be the clincher for putting these crooks away for a long, long time.

[tridim]

4. These guys better hope Bush doesn't get impeached soon

Lock the fuckers up.

[UTUSN]

5. Each report of daily testimony looks damning to LAY/SKILLING, yet

I can't shake the feeling that 4 months from now we'll be hearing the words, "Not guilty."

I've been repeating this endlessly.

[upi402]

6. under the prison with the scumbags!

:mad: :mad: :mad: :mad: :grr: :grr: :grr: :grr:

[babylonsister]

7. cal04 deserves some love from us all! Who are you, but

thanks for the education you provide.

[FreedomAngel82]

8. Who's "they"?

[lovuian]

9. I hope Cliff Baxter is watching!!!

O8)

He has to be smiling!!!