Enron’s Former Chief Concludes Testimony

Former Enron Corp. Chairman Kenneth L. Lay on Tuesday concluded his testimony by again asserting that the criminal case against him amounts to second-guessing by the government of decisions he made “in real time” as the energy company he founded veered toward collapse in late 2001.

“I loved Enron very much and I loved Enron’s employees very much,” Lay said. “The most painful thing in my life was watching Enron go into bankruptcy.”

Lay, 64, and former Enron Chief Executive Jeffrey K. Skilling, 52, face decades in prison if convicted of the multiple fraud and conspiracy charges against them. Skilling also is accused of insider trading in Enron stock.

Under a second round of questioning by defense lawyer George McCall “Mac” Secrest, Lay tried to undo damage done last week when federal prosecutor John C. Hueston revealed that Lay had tried repeatedly to contact actual and potential witnesses during the trial.

Lay testified it had been “incredibly difficult, almost impossible” for his defense to obtain information from people once they had been contacted by the federal Enron Task Force, which investigated and is prosecuting the case. Lay said that when he tried to contact people, he acted under authorization from his legal team and had no intention of trying to influence testimony.

Hueston, in a brief return to cross-examination, said it seemed unlikely that Lay could have been unaware that former Enron risk manager Wincenty “Vince” Kaminski was about to testify for the government when Lay tried to contact him in March. Hueston noted that Kaminski appeared on the prosecution’s official witness list.

“It may surprise you that I didn’t memorize the government witness list,” Lay replied.

In a little more than five days on the witness stand, Lay showed little of the warmth that endeared him to business, political and civic leaders during his 15 years at the helm of Enron. He was often testy with Hueston and occasionally with his own lawyer, Secrest.

Lay did, however, get his first wholehearted laugh out of the jury, with a slip of the tongue on Tuesday morning.

Hueston was asking Lay about how his chief lawyer, Michael W. Ramsey, had referred to former Enron Treasurer Ben F. Glisan Jr. as “a trained monkey.”

“I wasn’t trying to defend my monkey,” Lay began, then quickly corrected himself, saying he’d meant to say “lawyer.” Over the laughter of the jury of eight women and four men, Lay added: “I’m sure glad Mr. Ramsey isn’t here today.”

Ramsey has been sidelined for several weeks after undergoing surgery on some coronary blood vessels during the trial.

After Lay left the stand, his lawyers called several character witnesses, including former Houston mayor Bob Lanier and Houston Astros owner Drayton McLane Jr.

Lanier said Lay played a vital role in raising money to build stadiums for the Astros and the city’s pro basketball team. Lay persuaded corporate donors to plug a $35-million shortfall in the construction of what was then known as Enron Field, now named Minute Maid Park.

Lay always was “straight as a string with me” when working on civic projects, Lanier said.

McLane said Lay was committed to helping build the baseball field to enhance Houston’s reputation as a world-class city.

Houston civil rights leader the Rev. William A. Lawson also testified on Lay’s behalf, describing the ex-executive as someone who was friends “not only with the powerful, but who cares very much about the powerless.”

Bloomberg News was used in compiling this report.