Author: Gordon Platt
Ken Lay arriving at the courthouse
The case may yet grab the attention of the American public, however, once the government’s star witness, Andrew Fastow, former chief financial officer and the architect of Enron’s
off-the-books partnerships, takes the stand. Television ratings will surely rise if Skilling and Lay testify in their own defense, as they say they will, to prove their innocence.
One of the early witnesses, Ken Rice, former CEO of Enron Broadband Services, said that he had lied to Wall Street analysts, his employees and the company’s board about how the EBS business was faring. “I knew that Mr. Skilling and I had misled investors on a number of occasions about the prospects of our business at EBS,” he said under cross-examination. Skilling is facing 31 charges, including conspiracy and fraud. Lay, once one of Houston’s most respected philanthropists, is facing seven charges.
Skilling and Lay are expected to testify that they truly believed that Enron’s prospects were as bright as they portrayed them, even when the company was on the brink of disaster. The prosecution could have a difficult time of proving the defendants were lying, especially when they are forced to rely on witnesses who admit they were lying as well.