11 News BLOG

March 2008
S M T W T F S
           
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
         

Categories

More KHOU Blogs


Pipeline worker testifies against Ken Lay

2:37 PM Tue, Mar 14, 2006 |
Jason Whitely
 E-mail

A 46-year-old pipeline worker from New Mexico is the latest witness in the prosecution's case against Ken Lay and Jeff Skilling. Tuesday afternoon, he provided powerful testimony for the prosecution.

Johnnie Nelson told jurors he lives in Bloomfield, New Mexico, 190 miles northwest of Albuquerque and has worked in the oil fields for more than a quarter of a century, serving now as a Measurement Technician for Panhandle Energy.

Nelson admitted he was a little nervous but had a no-nonsense attitude on the stand.

Like many of his colleagues, he said he had an Enron 401(k) full of company stock in the fall of 2001 as the company spiraled into bankruptcy. It eventually became worthless.

Nelson said he didn't think it was ethical that Lay was selling his own stock privately while he was publicly promoting it and encouraging others to keep their shares in an employee meeting in late 2001.

George Secrest cross-examined Nelson on behalf of Ken Lay. Questioning Nelson on Lay's insider stock sales, Secrest said Lay didn't violate any law did he?

In a powerful response, Nelson replied: "He violated my trust. That's all I know."

Secrest later said Lay, too, lost millions when the stock price cratered.

Sarcastically, Nelson said "Yeah, I'm heartbroken."

After the judge dismissed him Tuesday afternoon, Nelson told 11News several of his friends lost more than a million dollars in their 401(k)'s. He did not specify how much he lost.

Nelson did say he had hoped to retire at age 45. Now, at age 46, he said he is still working on the pipelines, doing the best he can.