Prosecution Accuses Lay of Trying to Tamper With Witnesses

Hueston began his cross-examination shortly after 3 p.m. It followed nearly three days of testimony by Lay under friendly questioning from his attorney.

In the direction of Secrest, Lay addressed one of the government's key charges against him and told the jury that he was not required to immediately disclose his decision to cash in $70 million in Enron stock in 2001. He said such a disclosure would have further harmed the company during an already-tenuous time.

"It would not have been a positive event in the marketplace," Lay said.

Prosecutors say that Lay dumped millions of dollars in Enron stock because he knew the company was doomed, while he lied to investors by painting a strong picture of Enron. Lay and Skilling say the company was killed by the criminal activities of a few employees that, once revealed in the press, spooked investors and led to a classic "run on the bank."

Wednesday, Lay called the government charges against him "cockamamie."

Lay said the stock cash-in was used to pay back $70 million he had borrowed from the company, using a special line of revolving credit made available to some top executives as part of their compensation package.

At one point, Lay said his personal debt reached $110 million, owing to his far-flung investments in real estate and other assets. Lay took the opportunity to lash out at government prosecutors by saying he paid back almost the entire sum, save for a small part "and that was blocked by John Hueston." The government froze many of Lay's assets.

As part of an effort to show how much of Lay's personal wealth was tied up in Enron stock -- he said he owned 1 million shares and had 3 million vested option when the company entered bankruptcy in December 2001 -- Secrest had Lay reveal some stunning numbers when describing his worth at the height of Enron's success.

From 1999 to 2001, Lay testified that his total Enron compensation -- salary plus bonuses -- totaled $223 million. He said he kept $22 million for living expenses, gave away $25 million and owned three houses in Aspen, Colo., and three in Galveston, Tex., in addition to his Houston home. He had $32 million in Enron stock put into a deferred account that he said was meant for his retirement.

Lay also testified that he got a $10 million bonus for re-taking the chief executive job after Skilling left.

Since Enron's collapse, Lay has sold all three Aspen homes (which garnered $20 million) and all three Galveston homes, primarily to pay legal bills connected to his government indictment on six counts of fraud. He drives a '93 Mercedes, he said.

"It's all gone," Lay said.