The former chief operating officer of Enron Broadband Services spent most of the day answering defense questions in the fraud and conspiracy trial of Ken Lay and Jeff Skilling. Houston Public Radio Business Reporter Ed Mayberry has more.
Former Enron Broadband Services COO Kevin Hannon ended his day on the stand, answering questions from Ken Lay’s attorney Bruce Collins. Collins suggested that Hannon’s short time at the helm of Global Assets meant he had little working knowledge of how that part of the company functioned. Hannon admitted lying to the Securities and Exchange Commission during their investigation.
Earlier, Jeff Skilling’s attorney Mark Holscher asked Hannon why other Enron executives at a May 2001 meeting didn’t hear the comment “they’re on to us,” allegedly made by Skilling. Hannon last week said Skilling made the comment when an analyst firm produced a paper critical of Enron’s partnerships. But he conceded today that Skilling’s comments could have been sarcastic.
The defense has attacked Hannon’s credibility, noting that the former Internet division chief committed perjury in his testimony to the SEC. Holscher spent time detailing Hannon’s plea bargain agreement, questioning whether he’s giving truthful testimony or simply trying to obtain a lesser sentence.
Former Enron CFO Andy Fastow has been at the Federal Courthouse, and the Enron Task Force plans to call him to the stand in the morning. Fastow’s testimony follows that given by other former executives who have said the Skilling and Lay knew about attempts to hide losses from investors. Fastow pleaded guilty in January 2004 to two Enron-related charges, and faces a ten-year prison sentence.
From Federal Courthouse, Ed Mayberry, Houston Public Radio News.