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Fastow returns to stand, Cross-examination to begin Wednesday

8:23 AM Wed, Mar 08, 2006 |
Jason Whitely
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There is still a buzz around federal court about testimony on Tuesday from former Enron CFO Andrew Fastow. The 44-year-old spent almost the entire day on the stand facing direct examination from prosecutor John Hueston. He is back on the stand right now continuing to lay out his story of what happened at Enron.

On Tuesday, Fastow spent a lot of the day talking about the partnerships he created to enrich himself and hide losses for Enron. He told jurors he considered himself a hero for creating and managing such vehicles that helped Enron boost its earnings and consequentially its stock price. Fastow also said both Ken Lay and Jeff Skilling had full knowledge, even approved, the partnerships like LJM for such purposes.

During Tuesday afternoon questioning, Fastow became emotional when recounting how he deceived his wife about thousands of dollars in checks they received. He said they were gifts. In reality, they were secret proceeds from side deals he set up with Enron. Those lies, he said, caused his wife, Lea, to spend a year in prison for tax evasion.

The former chief financial officer is by far the highest profile witness for the government.

After hearing so much about Fastow and so little from the man himself over the last four plus years, most trial watchers are quite surprised about how sincere he appears on the stand. With a slight lisp, he speaks confidently and clearly about the details of partnerships and relationships with the two men on trial.

Hueston spent a lot of time discussing Fastow and his relationship with Skilling on Tuesday. This morning, Hueston is expected center in on Fastow and his relationship with Lay. Until now, few witnesses have pointed the finger at him.

Hueston said he has about two hours of direct examination left. It is likely that, by lunch, the defense could begin what is expected to be a tough cross-examination which could last a couple days.