The prosecution in the fraud and conspiracy trial of Ken Lay and Jeff Skilling expects to wrap up its case in about two weeks. Houston Public Radio’s Ed Mayberry reports. Aired 3/15/06 during KUHF’s Morning Business Report.
Enron Task Force head Sean Berkowitz told U.S. District Judge Sim Lake that prosecutors expect to rest their case the week of March 27th. Sherron Watkins is the next witness, after former Enron risk management team manager Vince Kaminski answers questions from the defense when trial resumes this morning.
Kaminski said he warned Enron of the conflict of interest when the LJM artnerships were being considered, having them run by C-F-O Andy Fastow. Kaminski was head of a research group that did analysis for Enron’s vast and sophisticated risk-control and trading operations.
Former Enron pipeline worker Johnnie Nelson from New Mexico testified that he saw a video of an October 23rd, 2001 employee meeting just over a month before the bankruptcy in which Ken Lay gave an upbeat assessment of the company. Nelson described the shrinking of his retirement account, which consisted entirely of Enron stock.
Jurors also heard from Chris Loehr, who worked on off-balance sheet projects with the LJM partnership. He confirmed the existence of the so-called Global Galactic agreement between Fastow and chief accountant Richard Causey.
Ed Mayberry, Houston Public Radio News.