11 News BLOG |
|
March 2008
Categories
More KHOU Blogs
|
« Deadline to register for runoff voting is Monday |
Main
| Body found in car identified as missing man »
Petrocelli finally finished with Fastow leaving a certain degree of doubt with jurors about what the two defendants really knew. Among his last topics, Petrocelli asked Fastow about questions from the Wall Street Journal in October 2001 regarding him and LJM. In an email to Pete Fastow, he told his brother the newspaper is "doing a character assassination on me" for an article he described as "a major hack job." "At that point I was still lying to my family and friends about what I was still doing at Enron," Fastow told jurors. "I had not yet come to grips with what I had done and been willing to admit it." As the pressure increased, Fastow started doing more things to protect himself. "You started to take notes of people who would call you to give your support," Petrocelli said. "At some point, I tried to keep a current record of conversations," Fastow said agreeing. Two of the calls were from Jeff Skilling who left the company months before. On October 19, 2001, notes from Fastow regarding a Skilling telephone call indicated the former CEO was concerned why Enron was not telling its story. All the transactions were proper and disclosed, Skilling said. Later that day, Lay told Fastow the board was unanimous and adamant that he remain as CFO. But "nobody knew about the things you had done behind the curtain," Petrocelli said, referring to secret dealings with Michael Kopper such as Southampton. Correct, said Fastow. Then four days later, Skilling called Fastow again according to his own records. On October 23, 2001, Fastow said Skilling was extremely upset about how Enron was handling this by not getting out there and telling its side of the story. Petrocelli, quoting Skilling, said "I knew 100% of everything going on with LJM. You are brilliant. The shareholders should give us medals for doing all these deals. These deals were great. Why isn't the company saying all this?," Skilling wanted to know. "You didn't disagree with that, correct?," asked Petrocelli. "I don't recall disagreeing with him, no," Fastow said. Petrocelli, honing in, pointed out what Fastow did not say to Skilling. "'We were breaking the law. We were conspirators. You were in on it with me. We committed fraud together. Of course we can't talk,' None of those things you said," Petrocelli asked. "I did not say those things, no sir," Fastow answered. A little after ten Monday morning, Mike Ramsey began cross-examination of Fastow. Out of the gate he, too, went after Fastow's credibility. Ramsey began with the August 15th meeting his client, Ken Lay, had with Fastow. In the wake of Jeff Skilling's sudden departure, Fastow met with Lay to express his loyalty, to tell him he would stay on with the company among other things. "You were looking Lay in the face and telling him a lie there," Ramsey said. "Yes I was not loyal to him or Enron when I committed those crimes," Fastow responded. "The truth of it is you became a very good liar over a period of years," stated Ramsey. "I stole on my own behalf and the behalf of others from Enron for a long time," Fastow answered. "I lied to Mr. Lay." "You were successful in your lies and deceit from '97 all the way up to 2001," Ramsey said to Fastow. "You had Mr. Lay fooled, you had Mr. Skilling fooled." "With regards to certain things I had all those people fooled," he answered. Ramsey is trying to show the jurors again how Fastow was the rogue executive, out for himself, and keeping higher-ups in the dark. Ramsey is likely to cross-examine Fastow Monday and most of Tuesday. With re-direct and re-cross, it is likely Fastow could stay on the stand for most of, if not all of this week. |
|
|