Lay Seeks Nonjury Trial on Charges Over Personal Banking

Enron Corp. founder Kenneth L. Lay wants a judge to decide the outcome of his so-called second trial while jurors are deliberating a verdict in his first.

In a court filing in Houston on Wednesday, Lay’s legal team opposed last week’s suggestion from prosecutors that he go to trial on charges relating to his personal banking as early as May or June this year.

Instead, Lay embraced U.S. District Judge Sim Lake’s February suggestion that the judge hear and decide the banking case while jurors deliberate a bigger fraud and conspiracy case against Lay, former Enron Chief Executive Jeffrey K. Skilling and former top accountant Richard A. Causey. The trial is slated to begin in January. Enron collapsed in December 2001.

If Lay were convicted in a banking case that went to trial before the larger conspiracy case, publicity could damage his ability to find a fair jury next year “and severely prejudice Mr. Lay’s ability to testify in the main case,” the filing said.

“If Mr. Lay were acquitted [in the banking case], as we expect, the public perception would likely be that the so-called rich and powerful always get off, thereby further inflaming community prejudice against him.”

Lake will consider the issue at a hearing April 21.

Lay said in a filing last month that he wanted the banking case to be presented to a separate jury after the conspiracy trial concludes.

Michael Ramsey, his lead criminal lawyer, said Wednesday that the legal team decided to ditch that idea in favor of a nonjury trial during deliberations of the conspiracy case because prosecutors said in court papers last week that they would accept either a bench or jury trial.

In the banking case, prosecutors allege that Lay misled banks about his intention to use loans to buy Enron stock on margin.

Andrew Weissmann, head of the Justice Department’s Enron Task Force, declined to comment Wednesday.