Prosecution Accuses Lay of Trying to Tamper With Witnesses

Lay acknowledged he had.

"So, you had one message for the outside world and one message for Mr. Glisan when he was testifying inside," Hueston said, making the point that he believes there are two Ken Lays -- one seemingly benevolent, the other outwardly malevolent.

"He had been under enormous pressure," Lay tried to explain.

"So you made him feel better by calling him a liar and having your attorney call him a monkey," Hueston said. "To help him out."

Also in the first 30 minutes of testimony, Hueston proved that Lay had invested $60,000 in Photofete, a small photo company started by a former girlfriend of Skilling's that did business with Enron. Lay did not recall disclosing this conflict-of-interest to the board, which he admitted was a violation of the company's code of ethics, which he authored.

Hueston finished the day by attempting to prove that Lay was well-connected to the company, aware of its daily operations and ultimately responsible for its conduct. Lay has maintained that he delegated a great deal of responsibility.

But Hueston used Enron documents known as DPRs, or "daily position reports" in an attempt to show that Lay knew more about the company than he said.

"The DPRs, what were they?" Hueston said.

Lay said it was "his understanding" that the DPRs tracked the performance of Enron divisions on a daily basis and monitored how risky was the company's positions in various markets.

"You were an important part of the DPRs, right?" Hueston asked.

"I did not receive them on a daily basis," Lay said.

But then Hueston produced a document that showed Lay and other top executive received daily summaries of the DPRs. "This would indicate that I received it," Lay said, but added: "I do not believe I looked at these on a daily basis."