Enron whistle-blower says Lay launched bogus probe

[Judi Lynn]

Enron whistle-blower says Lay launched bogus probe
Wed Mar 15, 2006 3:44 PM ET

By Jeff Franks
HOUSTON (Reuters) - Enron Corp. whistle-blower Sherron Watkins recounted on Wednesday how she warned then-chief executive Ken Lay in August 2001 that financial fraud could destroy the company, but that his response was to launch a "bogus" investigation and try to have her fired.

At the same time Watkins was trying to save the now-bankrupt company where she was vice president of corporate development, Lay was selling off millions of dollars of Enron stock to pay off loans, prosecutors said.

Watkins, testifying in the fraud and conspiracy trial of Lay and fellow former Enron boss Jeffrey Skilling, said Lay appeared to take her seriously when she discussed with him off-the-books partnerships run by chief financial officer Andrew Fastow that were running up huge losses for Enron.

In a now-famous August 16, 2001 memo, she wrote to Lay, "It sure looks to the layman on the street that we are hiding losses in related partnerships and will compensate that company with Enron stock in the future."
(snip/...)

http://today.reuters.com/news/newsArticle.aspx?type=topNews&storyID=2006-03-15T204253Z_01_N15408321_RTRUKOC_0_US-ENRON-TRIAL.xml&archived=False

[babylonsister]

1. Of all those crooks, Lay is the one I want to see go down! nt

[JuniorPlankton]

2. Skilling is at least no better n/t

[tularetom]

3. Yeah but Lay was the one with his nose

struck up bush's ass. I don't like any of 'em but I wouldn't mind seeing Lay get put UNDER the jail for life. With Skilling just IN the jail is OK.

[JuniorPlankton]

6. OK, deal.

:evilgrin:

[wordpix2]

8. this ass stole $220 Mil from CT taxpayers with help from Con Rowland

former governor sent to jail for a year.

[Rex]

4. Neil Bush got away with 1 billion dollars in taxpayer money

in the Savings and Loan scandals of the 80s. Just another example of how these rotten RW freaks get away with highway robbery! I wish someone would put a stop to it!

[NastyRiffraff]

5. If Lay goes down Bush will pardon him

He'll have to (from his POV). Lay has too much on the Bush family.

[wordpix2]

7. another reason to yank * from office before '08 election