Jurors heard from three witnesses in a row – a former Enron risk management official, a former Enron pipeline worker who lost his savings when the company collapsed and a former employee of one of Andy Fastow’s partnership. Houston Public Radio’s Ed Mayberry reports. Aired 3/15/06 during KUHF’s Morning Business News Report.
In between the “superstars” of the Enron trial are other witnesses the Enron Task Force has scheduled to help tell the government’s story.Former Enron risk management team manager Vince Kaminski answers defense questions when trial resumes this morning. He said in 1999 he warned Enron of the conflict of interest in the proposed LJM partnerships if the CFO ran them. Kaminski said Jeff Skilling called him days later and said his group was acting like cops instead of helping with transactions. He was transferred.
Former Enron pipeline worker Johnnie Nelson from New Mexico testified that he saw a video of an October 23rd, 2001 employee meeting in which Ken Lay gave an upbeat assessment of the company. That was just over a month before Enron declared bankruptcy. 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.
Sherron Watkins–the whistleblower who famously sent the memo to Ken Lay warning of accounting irregularities—is on the stand after Kaminski.
Ed Mayberry, Houston Public Radio News.