Lay Finishes Testimony in Enron Trial

HOUSTON, May 2 -- It was a scrap to the finish as Kenneth L. Lay concluded testimony in his fraud trial Tuesday, with the Enron founder accusing federal prosecutors of intimidating witnesses and the government countering that Lay contradicted his earlier testimony.

After a leisurely morning of friendly questioning from his defense lawyer, attempting to rebut government charges raised during three days of cross-examination, the prosecution pounced as soon as Lay was handed back for final questioning.

Assistant U.S. Attorney John C. Hueston sank his teeth into the exchange, accusing Lay of flouting Enron's code of ethics -- a code Lay authored.

"Rules were important but you didn't follow them, right?" Hueston asked.

"Rules are important but you should not be a slave to rules, either," said Lay, who is charged with six counts of fraud for what the government alleges is his role in the 2001 collapse of the energy giant.

Lay tried to tussle with the dogged Hueston, saying he had intimidated former Enron executives who testified for the prosecution.

Of one, former Enron treasurer Benjamin Glisan, Lay said: "I think he was put in solitary confinement so you could work your will." Hueston stated that Glisan had received no deal from the government for his testimony. Glisan has served two years of a five-year sentence following a guilty plea for fraud.

Lay wrapped up his nearly six days on the witness stand this morning taking a final question from his lawyer, George "Mac" Secrest: "Did you love Enron?"

"I loved Enron very much and Enron's employees very much," Lay testified. "The most painful thing in my life was watching Enron" enter bankruptcy.

Character witnesses for Lay -- including Houston Astros owner Drayton McLean--are scheduled for the rest of the day, to be followed by technical witnesses discussing the more complex elements of testimony. This is the 14th week of the trial.

After that, there will be a government rebuttal and closing statements from each side before the jury gets the case. Lay's testimony came after former Enron chief executive Jeffrey K. Skilling spent eight days on the witness stand in the trial. Skilling is charged with 28 counts of fraud, conspiracy and insider trading. The government alleges that the pair conspired to hide Enron's mounting losses. When Skilling abruptly left the company in August 2001, Lay took over the chief executive's job through its bankruptcy in December 2001.

Before the pair testified, conventional wisdom was that the prickly Skilling could implode on the stand while the avuncular Lay, the public face of Enron, would charm the jury.