W-OLF
04-03-2006, 06:43 PM
Lawyers for former Enron Corp. chiefs Kenneth Lay and Jeffrey Skilling began their case Monday with the two men's former assistant who said she believed a key prosecution witness lied about his involvement in company-related crimes.
During the first 2 1/2 months of the trial, defense lawyers tried to tear down prosecution witnesses on cross-examination. Their first defense witness Monday also served to erode prosecution testimony.
Joannie Williamson served as an assistant at various times to Skilling, Lay and former investor relations chief Mark Koenig, a key prosecution witness.
Koenig pleaded guilty in August 2004 to aiding and abetting securities fraud and testified for the prosecution that he lied to investors about Enron's finances. During more than seven days in the witness chair in February, he denied claims that he had told Williamson he pleaded guilty to a crime he didn't commit.
The defense teams have repeatedly alleged that most ex-Enron executives who admitted to committing crimes did so out of fear of prosecution and in hopes of receiving lenient punishments rather than because they broke the law.
Williamson said Koenig, whom she described as a close family friend as well as a former boss, called her the day he pleaded guilty.
"I said, 'You're not guilty,' and he said, 'I know that, but in order for this to work, everyone needs to believe that I am.'"
She added she did not believe he was guilty, even though Koenig told jurors in February, "I pled guilty because I am guilty."
Williamson said yes when prosecutor Kathryn Ruemmler asked if she thought Koenig lied during his testimony, which implicated Lay and Skilling in a string of falsehoods.
"Did he tell you he was pressured?" Ruemmler asked.
"No, he did not," Williamson replied.
Skilling lawyer Daniel Petrocelli said Monday that Skilling could testify as early as Wednesday afternoon, depending on how long the first few defense witnesses take on the stand. Lay's testimony will come later.
The government contends that both men repeatedly lied to investors and employees about Enron's strength while their optimism hid accounting tricks that masked weak business units and massive losses.
The defendants say no fraud occurred at Enron other than a few executives who skimmed millions from secret scams. They say bad publicity and lost market confidence shoved what was once the country's seventh-largest company into bankruptcy protection in December 2001.
Prosecutors rested their case last week after presenting 22 witnesses, piles of documents and hours of audiotapes and videotapes intended to show what Lay and Skilling said publicly and how it differed from what witnesses said they knew internally.
Prosecutors lacked obviously incriminating e-mails and documents pointing to the defendants' guilt. Rather, prosecutors relied on recollections of witnesses eight of whom have pleaded guilty to Enron-related crimes to bolster allegations that Lay and Skilling knew Enron didn't live up to their hype.
Skilling faces 28 counts of fraud, conspiracy, insider trading and lying to auditors, while Lay faces six counts of fraud and conspiracy. Last week, U.S. District Judge Sim Lake approved prosecutors' request to drop three counts against Skilling and one count against Lay to streamline their case.
Other than Lay and Skilling, the defense witness lineup isn't expected to include well-known Enron names.
Lawyers for former top executives who haven't been charged with crimes have indicated to the defense teams that their clients will invoke their Fifth Amendment rights not to testify if called, so their appearances are unlikely.
Other witnesses could include various experts and up to five character witnesses for each of the defendants.
Possible Lay character witnesses reflect his former status as a Houston mover and shaker before his company collapsed in scandal. They could include Houston Astros owner Drayton McLane Jr.; Denton Cooley, a noted heart surgeon and Texas Heart Institute founder; ex-Houston Mayor Bob Lanier; and former Secretary of Commerce Robert Mosbacher Sr.
Skilling's potential list includes friends and family, and may include Carol Baxter, widow of Cliff Baxter, a former top Enron executive and close Skilling friend who committed suicide in January 2002.Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
credit BellSouth
During the first 2 1/2 months of the trial, defense lawyers tried to tear down prosecution witnesses on cross-examination. Their first defense witness Monday also served to erode prosecution testimony.
Joannie Williamson served as an assistant at various times to Skilling, Lay and former investor relations chief Mark Koenig, a key prosecution witness.
Koenig pleaded guilty in August 2004 to aiding and abetting securities fraud and testified for the prosecution that he lied to investors about Enron's finances. During more than seven days in the witness chair in February, he denied claims that he had told Williamson he pleaded guilty to a crime he didn't commit.
The defense teams have repeatedly alleged that most ex-Enron executives who admitted to committing crimes did so out of fear of prosecution and in hopes of receiving lenient punishments rather than because they broke the law.
Williamson said Koenig, whom she described as a close family friend as well as a former boss, called her the day he pleaded guilty.
"I said, 'You're not guilty,' and he said, 'I know that, but in order for this to work, everyone needs to believe that I am.'"
She added she did not believe he was guilty, even though Koenig told jurors in February, "I pled guilty because I am guilty."
Williamson said yes when prosecutor Kathryn Ruemmler asked if she thought Koenig lied during his testimony, which implicated Lay and Skilling in a string of falsehoods.
"Did he tell you he was pressured?" Ruemmler asked.
"No, he did not," Williamson replied.
Skilling lawyer Daniel Petrocelli said Monday that Skilling could testify as early as Wednesday afternoon, depending on how long the first few defense witnesses take on the stand. Lay's testimony will come later.
The government contends that both men repeatedly lied to investors and employees about Enron's strength while their optimism hid accounting tricks that masked weak business units and massive losses.
The defendants say no fraud occurred at Enron other than a few executives who skimmed millions from secret scams. They say bad publicity and lost market confidence shoved what was once the country's seventh-largest company into bankruptcy protection in December 2001.
Prosecutors rested their case last week after presenting 22 witnesses, piles of documents and hours of audiotapes and videotapes intended to show what Lay and Skilling said publicly and how it differed from what witnesses said they knew internally.
Prosecutors lacked obviously incriminating e-mails and documents pointing to the defendants' guilt. Rather, prosecutors relied on recollections of witnesses eight of whom have pleaded guilty to Enron-related crimes to bolster allegations that Lay and Skilling knew Enron didn't live up to their hype.
Skilling faces 28 counts of fraud, conspiracy, insider trading and lying to auditors, while Lay faces six counts of fraud and conspiracy. Last week, U.S. District Judge Sim Lake approved prosecutors' request to drop three counts against Skilling and one count against Lay to streamline their case.
Other than Lay and Skilling, the defense witness lineup isn't expected to include well-known Enron names.
Lawyers for former top executives who haven't been charged with crimes have indicated to the defense teams that their clients will invoke their Fifth Amendment rights not to testify if called, so their appearances are unlikely.
Other witnesses could include various experts and up to five character witnesses for each of the defendants.
Possible Lay character witnesses reflect his former status as a Houston mover and shaker before his company collapsed in scandal. They could include Houston Astros owner Drayton McLane Jr.; Denton Cooley, a noted heart surgeon and Texas Heart Institute founder; ex-Houston Mayor Bob Lanier; and former Secretary of Commerce Robert Mosbacher Sr.
Skilling's potential list includes friends and family, and may include Carol Baxter, widow of Cliff Baxter, a former top Enron executive and close Skilling friend who committed suicide in January 2002.Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
credit BellSouth