Report: Enron Ex-CEO Kept Faith in Stock

Former Enron Corp. Chairman and Chief Executive Kenneth L. Lay had nearly absolute faith in the company’s stock even as it plunged, with many of his share sales made only to cover margin calls, according to a published report.

Lay’s personal finances were structured similarly to those at Houston-based Enron -- based on a firm belief that the company’s stock would never tumble, the New York Times reported Sunday after reviewing financial records provided by people sympathetic to Lay.

The records appear to cast doubt on the notion Lay urged employees to buy Enron stock while he was secretly selling his in 2001.

The records present evidence of reckless financial planning and hubris, potentially complicating prosecutors’ efforts to build a criminal insider-trading case, the paper said. Prosecutors are nearing a decision on whether to charge Lay, the paper said.