More NewsProsecutor slam Lay over share sales

Prosecutor slam Lay over share sales

Grueling day in witness box for Enron founder

After spending the first two days of his testimony calmly defending his
actions, Enron founder Ken Lay grew ‘increasingly annoyed’ as government
prosecutors accused him of hiding the fact that he sold $77m (£43m) worth of
Enron shares while telling the public he was in fact buying them.

While there was no legal requirement for Lay to disclose this, public
prosecutor John Hueston accused him of hiding the fact that he sold the shares
in 2001 – the year the company went bankrupt and of portraying himself to the
media as a ‘net buyer’.

Hueston said Lay could have revealed he was selling ‘much, much more” than
he was buying, or, at least corrected analysts publishing reports calling him a
‘net buyer” of Enron stock, when he bought just $4m worth that year.

Lay denied he had done anything illegal, saying he planned to report the
sales at year-end, as he had previous years, in compliance with regulatory
requirements.

Lay and former boss Jeff Skilling, are charged with conspiracy and fraud in
connection with Enron’s bankruptcy.

Both deny any wrongdoing.

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