Enron's Lay Wants to Meet Prosecutors, Person Says (Update1)

[fearnobush]

Enron's Lay Wants to Meet Prosecutors, Person Says (Update1)
June 21 (Bloomberg) -- A lawyer representing Kenneth Lay, Enron Corp.'s former chief executive, asked to meet with U.S. prosecutors to discuss their investigation into the fraud that triggered the company's collapse, a person familiar with the case said.

The federal grand jury in the 2 1/2-year investigation of the Houston-based energy trader is two weeks away from being asked by U.S. prosecutors to hand up an indictment of Lay, 62, the Houston Chronicle reported Saturday, citing unidentified lawyers.

Lay's request for a meeting with prosecutors may mean ``he's trying to create juror sympathy,'' said former federal prosecutor Christopher Bebel, a Houston lawyer. Lay is trying to suggest ``the government has been on a vendetta against him.'' Bebel said he doubts Lay is seeking a plea bargain, offering his cooperation in return for leniency, because there are no higher-ranking Enron officials that might be a target of the probe.

The Enron investigation has yielded an indictment of former Chief Executive Officer Jeffrey Skilling, 50, and a guilty plea by former Chief Financial Officer Andrew Fastow, 42, who is cooperating with prosecutors. Enron officials are accused of using off-the-books partnerships to hide debt and artificially boost profits. Lay has denied any wrongdoing.

``This is the bulls-eye on the target the government has been aiming at for the last three years,'' said Kirby Behre, a former federal prosecutor. ``The government has been making deals with senior Enron officers in the hopes of getting to this point.''

Bankruptcy

In December 2001, Enron filed the then-largest bankruptcy in U.S. history following an accounting fraud that cost investors $68 billion. The collapse preceded accounting scandals and federal investigations at WorldCom Inc., HealthSouth Corp., Tyco International Ltd. and other major companies.

Lay's lawyer Mike Ramsey didn't return calls seeking comment. Bryan Sierra, a spokesman for the U.S. Justice Department, declined to comment.

Lay ``was the toughest person to reach. He was somewhat aloof and held a ceremonial position more than anything else prior to Skilling's departure,'' Bebel said. ``But once Skilling left, he had nowhere to hide.''

Prosecutors are focusing on Lay's role as chief executive after Skilling left the company in 2001, a person familiar with the investigation said. Prosecutors have re-interviewed witnesses and are examining what Lay knew about the company's financial condition when he told investors Enron was sound, the person said.

Philip Hilder, lawyer for Enron whistleblower Sherron Watkins, said he wasn't surprised by the announcement that an indictment may be near.

`Corporate Ladder'

``It has taken this long because prosecutors have been working their way up the corporate ladder,'' Hilder said. ``This is a highly complex, sophisticated action that has gone on for a long time. The government is being very deliberate in analyzing the evidence before they charge anyone.''

Behre, a sentencing law expert, said there is nothing Lay can offer that would earn him a plea arrangement.

``Pity poor Ken Lay. He's the last one, the most senior executive. There's not going to be a sweet plea deal offered to him,'' Behre said. He said Lay might face up to 30 years in prison if convicted on securities fraud-related charges.

``In essence, a life sentence,'' he said.



To contact the reporter on this story:
David E. Rovella in New York at [e-mail].

To contact the editor of this story:
Patrick Oster at [e-mail]
Last Updated: June 21, 2004 16:49 EDT

<http://quote.bloomberg.com/apps/news?pid=10000103&sid=ajTHSQbLI8IE&refer=us>

[billybob537]

1. NEWS FLASH

Nov. 3rd 2004 Bush pardons Ken Lay.

Remember you heard it here first!

[tridim]

2. Without a doubt

At that point he'll have nothing to lose.

[puerco-bellies]

3. He wants to meet with them..

To remind the Federal Prosecutors, that their boss is his bitch, bought and paid for.

[markses]

4. Please edit to 4 paragraphs

That'
s a copyright violation right there, and as much as I hate our outmoded and aggressively anti-innovation copyright laws, you do not want to put the site in danger, so follow the rules.