Lay fraud trial goes to judge for ruling
State says Enron chief misled banks
HOUSTON -- Prosecutors described Enron Corp. founder Kenneth Lay as a sophisticated hands-on investor who wanted to pry loans from banks so he could buy stock even though he knew federal rules prohibited him from using the money for that purpose.
But Lay's lawyer, in closing arguments yesterday at Lay's bank fraud trial, insisted he had no intention to defraud or mislead bankers and wasn't aware of the regulations because he was more focused on running Enron and not closely managing his own personal finances.
The three-day case went to US District Judge Sim Lake, who heard it without a jury.
Lake will not release his verdict until a jury finishes its deliberations in the main case involving Lay and former Enron chief executive Jeffrey Skilling .
The government alleges that beginning in 1999, Lay obtained $75 million in loans and then reneged on an agreement with the lenders that he wouldn't use the money to carry or buy stock or mutual funds. The federal rules governing use of loans for stock sales were covered in documents Lay signed.
