Houston – Imagine never having formed an opinion about Enron.
You didn’t see the movie, you didn’t read the books, you don’t get the newspaper, you rarely watch TV news, and you didn’t lose money when Enron crashed.
You are the ideal juror to judge Enron’s former chairman Ken Lay, 63, and chief executive Jeff Skilling, 52, who are charged with fraud in the collapse of the Houston-based energy company.
Everything you know about Enron comes from the courtroom. And here’s what you heard from the lawyers in their opening arguments Tuesday.
Assistant U.S. Attorney John Hueston: “The United States … will take you inside the doors of what was once the seventh-largest corporation. … In the year before Enron declared bankruptcy, two men at the helm … told lie after lie about the true financial condition of Enron – lies that propped up the value of their own stock holdings and lies that deprived the common investors of information that they needed to make fully informed decisions about their own Enron stock.
“You will see that … Lay and Skilling knew key facts about the true condition of Enron, facts that the investing public did not know. With that information … Lay and Skilling sold tens of millions of dollars of their own Enron stock.
“This is a simple case. It is not about accounting. It is about lies and choices.”
Skilling’s attorney, Daniel Petrocelli: “I am proud and privileged to represent this man. … Mr. Skilling … didn’t lead any criminal conspiracy. What this man led was a transformation in the energy industry in this country and, indeed, throughout the world. He never broke the law; he never told anybody to break the law; he didn’t cheat; he didn’t steal. … Mr. Skilling didn’t steal one nickel. …
“There is a man, by the way, who did steal a nickel, stole more than a nickel, stole about $25 million … and that was (former chief financial officer) Andrew Fastow. And he was helped by a man named Ben Glisan (former treasurer) … and a man named Michael Kopper (former finance executive).
“These three men ripped Enron off.
“Now … I am not saying that Andrew Fastow’s crimes against Enron brought Enron down. … He stole $25 million. As big as that is, it’s not big enough to bring Enron down. Enron was a $100 billion corporation. …
“Enron was no house of cards. It was no crooked company. … It was a wonderful company … a shining star. …
“They don’t want you to get involved with the accounting. We do.”
Lay’s attorney, Michael Ramsey: “Mr. Hueston tells us this case is not about accounting. Well, what are these people supposed to be lying about? They’re supposed to be lying about accounting. The government now wants to back away from it because they know we can prove the accounting’s all right.
“Ken Lay has, does and will continue to accept responsibility for the fall of Enron. He was the man at the controls. But failure is not a crime. Bankruptcy is not a crime. If it were, we would have to turn Oklahoma back into a penal colony.
“They have the audacity to say that Ken Lay presided over a big conspiracy. … We’ll prove there never was such a thing.
“The very seeds of Enron’s destruction were found in its tremendous growth. There have been bankruptcies throughout American history. Some of them are criminal. … This is not one that is criminal. … This is one that is caused by a panic. …”
Ken Lay “became a world-class, respected business leader and made a lot of money doing it. …”
He “never sold a single share of Enron stock that he was not compelled to sell. …
“He is probably the biggest pillar that the … First Methodist Church has here in Houston. And Ken Lay, believe me, is not a courthouse Christian. There are so many people who get religion when they come to court – they haven’t had it all their lives – that I am proud to represent somebody that has been bone-solid church-bound all his life.”
The trial is expected to go on for at least four months. And it’s sure a different story inside the courtroom.
Al Lewis’ column appears Sunday, Tuesday and Friday. Respond to Lewis at , 303-820-1967, or alewis@denverpost.com.
