The defense paraded five witnesses on their first day of defense testimony at the fraud and conspiracy trial of Ken Lay and Jeff Skilling. Houston Public Radio’s Ed Mayberry reports. Aired 4/4/06 during the KUHF Morning Business Report.
The defense revisited specific times and events referred to in government testimony, hearing from Rogers Herndon, a former vice president with Enron’s retail energy services division. He said from a risk management standpoint, transferring activities from Enron’s struggling retail division to its profitable wholesale division made good business sense. He testified he never heard that it was being done to hide losses.
Earlier, former Enron Energy Services analyst Diann Huddleson, said that Enron had reserves of up to $400 million to cover losses from California utilities that failed to pay their bills. The defense was countering prosecution testimony that Enron used reserves to pad earnings.
The trial resumes this morning with Sarah Davis, who formerly worked at human relations at Enron. Defense attorneys now say that Jeff Skilling could be called to the stand as early as Wednesday.
Ed Mayberry, Houston Public Radio Business News.