• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Enron Founder Urges Former Employees to `Stand Up' for the Truth

Posted on: Tuesday, 13 December 2005, 21:00 CST

HOUSTON _ Kenneth Lay, facing criminal trial in January in the collapse of Enron Corp., counterattacked Tuesday with a sharply worded speech complaining that he's being unjustly prosecuted in a Justice Department "wave of terror." And he urged employees to speak out to clear Enron's name _ and his.

The former Enron chairman, who blames former Enron chief financial officer Andrew Fastow for the Enron debacle, told the Houston Forum that he's being prosecuted for "normal business activities" and that the Justice Department's Enron Task force is bent on vengeance not truth.

"Truth is a great rock," Lay told an audience of about 500. "Whether it will continue to be submerged by a wave _ a wave of terror by the Enron Task Force _ will be determined by former Enron employees. It will only take a few brave individuals who are willing to stand up and say it's time for the truth to come out."

Lay, former chief executive officer Jeff Skilling and former chief accounting officer Rick Causey are scheduled to go to trial Jan. 17 before U.S. District Judge Sim Lake on conspiracy and fraud charges. Lay will face four charges of fraudulent personal borrowing in a separate trial. If convicted on all counts he could receive 175 years in prison and face millions in penalties.

Responding to Lay's appeal, some former employees reacted with ridicule. Most of them lost their savings and careers.

"The employees are not going to stand up for him," said former employee Angie Lorio. "They're going to crucify him."

Former employee Rod Jordan agreed. "Ken Lay and Jeff Skilling had to know what was going on," he said.

As for Lay's charge that he's being unfairly prosecuted, Justice Department spokesman Bryan Sierra declined comment. "We're not going to respond directly to a defendant. Everything the government has to say, we'll say in court."

Defense lawyers have complained for months that they cannot persuade former executives and employees to cooperate with the defense. They accuse prosecutors of intimidating potential witnesses. Prosecutors deny it.

Lake has deplored the witness shortage and has encouraged cooperation but has found no misconduct by prosecutors.

Lay has been selective in granting interviews and making public comments, but he has spoken out before. The day he was indicted, in July 2004, he held a news conference and passionately proclaimed his innocence.

But he appeared to be taking a risk, however, speaking so strongly and so publicly just weeks before his trial. His lead lawyer, Mike Ramsey, who stayed behind to answer reporters' questions, defended the speech.

"It is a person's first amendment right to speak as long as they stay within the local rules about their adventures ... in the criminal justice system," Ramsey said. "And if somebody in Ken's position doesn't speak the truth, then it never resonates."

Lay told the audience he plans to testify in his own defense. Fastow, who has pleaded guilty and is cooperating with prosecutors, is expected to testify against him.

The Houston Forum invited Lay to speak after hearing from Enron whistleblower Sherron Watkins and author Kurt Eichenwald, who wrote a book about Enron's fall entitled "Conspiracy of Fools." Board member Steve Howell said, "I think it was equal time. You heard it from his own mouth."

___

(c) 2005, The Dallas Morning News.

Visit The Dallas Morning News on the World Wide Web at http://www.dallasnews.com/

Distributed by Knight Ridder/Tribune Information Services.

_____

ARCHIVE PHOTOS on KRT Direct (from KRT Photo Service, 202-383-6099): Kenneth Lay

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.

Source: The Dallas Morning News

More News in this Category