Ex-Enron broadband executives get 2d trial

HOUSTON -- The first of three retrials of five former Enron Corp. broadband executives began yesterday with a prosecutor telling the jury it was about fraud and deception. The defense insisted no crimes were committed.

It was the government's second effort to seek fraud and conspiracy convictions for ex-broadband unit finance chief Kevin Howard and accountant Michael Krautz. The first trial ended last year with a hung jury. This time, Howard and Krautz face a jury in a Houston courtroom next door to the ongoing fraud and conspiracy trial of Enron founder Kenneth Lay and former CEO Jeffrey Skilling.

The government alleges Howard and Krautz broke accounting rules so they could book immediate income in the fourth quarter of 2000. The revenue never came because a video-on-demand venture never got off the ground. Prosecutor Van Vincent told jurors the sale was a sham, because investors were promised they would be bought out at a premium.

''And here's the kicker. It couldn't be put in writing because it would, quote, blow the accounting," Vincent said. Defense lawyers countered that a buyout promise was discussed, but was not part of the final deal because it would have broken accounting rules.

Of the other three defendants, two face retrial in September; the third has no trial date pending the outcome of his appeal to dismiss the charges.