/ 25 April 2006

Lay tells court of his ‘American nightmare’

Kenneth Lay, the former Enron chief, on Monday told a courtroom that his pursuit of the American dream had ended in an ”American nightmare” after the business collapsed amid allegations of fraud in 2001.

Taking the witness stand for the first time as his trial on fraud charges moved into its 13th week, Lay said he was eager to set the record straight. ”I’ve been very anxious to tell what I believe is the truth about Enron,” he said. ”We’ve seen a lot of interesting testimony, a lot of interesting people, a lot of lies, a lot of misinformation and some truth.”

Lay described claims that a conspiracy existed at the top of Enron as ”ludicrous”. He said that Andrew Fastow, the former finance chief, who has already pleaded guilty to fraud charges, did a ”tremendously brilliant” job of hiding his crimes from fellow executives.

Lay, who founded Enron in 1985, helped build the business into the seventh largest in the United States, before it imploded in late 2001. He is on trial alongside Jeffrey Skilling, another former Enron chief executive.

Prosecutors have accused Skilling of spearheading the alleged financial fraud. Lay has been accused of perpetuating the scam when he resumed control after Skilling abruptly quit just five months before the firm filed for bankruptcy. Both men have pleaded not guilty. Asked by his own lawyer if he had committed fraud, Lay responded firmly: ”I did not.”

Lay, who rose from rural poverty to a life attending parties and mingling with the Bush family, told how he had enjoyed more success than he could have imagined. Between 1998 and 2001, the focus of the trial, Lay was paid $19-million and banked more than $200-million from selling shares. ”I would never have thought ever that I would be in criminal court defending charges,” he said. ”I guess you could say in the last few years I’ve achieved the American nightmare”.

Once a popular figure in Houston, where the company was based, Lay is a gentler character than Skilling and legal experts have predicted he might be more difficult to convict.

Lay (64) said he had been looking forward to retirement when Skilling resigned. ”I was just a couple of months away from being 60. I was looking forward to a somewhat more normal life, a more relaxed life,” he said. – Guardian Unlimited Â