Watkins Testifies About Famous Memo

Sherron Watkins has been on the stand in the fraud and conspiracy trial of two former Enron executives. Houston Public Radio's Ed Mayberry reports. Aired 3/16/06 during KUHF's Morning Business Report.

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Sherron Watkins met with Ken Lay after her famous memo warning of accountingirregularities. Watkins said Lay seemed to take her seriously, and said hewould take it to the general counsel's office for an investigation. Shesaid she was shocked to find out that the company had researched theconsequences of firing her just two days after her meeting with Lay. Defense attorney Daniel Petrocelli reiterates that the government has hadthe upper hand in handling its witnesses.

petrocelli3 "...of this trial."

U.S. District Judge Sim Lake says the government has a scheduling conflictwith its next witness, so the trial will resume on Monday. Prosecutorsexpect to rest their case the week of March 27th. Then the defense willcall its witnesses.

Ed Mayberry, Houston Public Radio News.

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