# The ENRON Trial: some questions:

**URL:** <https://boards.straightdope.com/t/the-enron-trial-some-questions/347392>\
**Category:** Factual Questions\
**Created:** [March 7, 2006, 4:57pm UTC](https://boards.straightdope.com/t/the-enron-trial-some-questions/347392 "2006-03-07T16:57:34Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![ralph124c](https://avatars.discourse-cdn.com/v4/letter/r/8797f3/32.png) [@ralph124c](https://boards.straightdope.com/u/ralph124c)\
**Post date:** [March 7, 2006, 4:57pm UTC](https://boards.straightdope.com/t/the-enron-trial-some-questions/347392/1 "2006-03-07T16:57:34Z")

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I have been following the trial of ken lay, former CEO of ENRON. The latest I have read is that the prosecution has brought out ANDREW FASTOW, who has already pled guilty to setting up the fraudulent partnerships 9that concealed ENRON’s huge losses). Now, FASTOW has admitted committing crimes, and also has admitted to carrying out this work with the FULL consent of president Lay (and the senior execs). So, how credible is he? Anyway, this fastow says that ken lay knew everything, and approved of the fraud. Moreover, just as questions began to arise (about the true state of ENRON’s finances) Mr. lay began to cash out-he sold some $7 million worth of ENRON stock, at or near the peak of its value. My question; is Ken lay now open to lawsuits from shareholders? Are his troubles just beginning?  
And, has he been able to concela a lot of his property 9hoestead rights, etc.)?

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**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\
**Post date:** [March 7, 2006, 7:07pm UTC](https://boards.straightdope.com/t/the-enron-trial-some-questions/347392/2 "2006-03-07T19:07:17Z")

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1. When writing proper nouns, capitalize only the first letter of each word, unless you want to annoy your fellow netizens and make them want to beat you through the Internet.

2. Fastow’s credibility is a key defense issue. Having people agree to a plea-bargain in exchange for testimony against their boss is a common prosecution tactic (see every major Mafia trial, for example) and the defense will always try to bring up this deal to impeach the witness’s credibility. If the government can back up Fastow’s testimony with other evidence, it probably won’t work.

3. Lay and Skilling (and perhaps some other people) are already defendants in a shareholder lawsuit. Some shareholders have accepted settlements, some suits are still ongoing.

4. The NY Times recently ran an article about Ken Lay’s assets. [Here is is](http://select.nytimes.com/search/restricted/article?res=F50B14F7345A0C758EDDAB0894DE404482).

Some selected quotations:

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> Once at the pinnacle of Houston’s financial and political elite with a fortune worth as much as $400 million, Mr. Lay, the former chairman of the Enron Corporation, is now facing financial ruin.
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> While he has talked about his shrinking wealth since Enron’s collapse, he has managed to keep up appearances, continuing to live in a full-floor apartment in the city’s affluent River Oaks section. But already, according to personal financial records obtained by The New York Times, Mr. Lay has fallen out of the ranks of the city’s millionaires, with a stated net worth of less than $650,000.

> [@](#):
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> In addition, Mr. Lay, 63, faces potential liability from lawsuits that were filed against him by shareholders and others after Enron’s collapse that would almost certainly force him into personal bankruptcy. Mr. Lay may also be forced to forfeit his remaining home, along with some other assets, if he is convicted in the criminal fraud trial that is now taking place in Houston.