Direct
Examination by Hueston:
Q.
[Question concerning a kickback scheme]. .. And those gifts came in the form of checks?
A.
Yes.
Q.
Checks written to your wife, yes?
A.
Yes.
Q.
And
your
sons?
A.
Yes.
Q.
And yourself?
A.
Yes.
Q.
Take a look at
Exhibits 7621 and 22.
Do you have the first one
there? And then 22,
7639, 7625. Are those examples of some of the checks ... you asked to be written to disguise those RADR proceeds?
A.
Yes.
Q.
Mr. Fastow, what is this?
A.
A check from Mr. Dodson to my son.
Q.
And what was this,
in
reality?
A.
Payment of proceeds from the RADR transaction.
Q.
What's this?
A.
Check
to my wife.
Q.
What was this, in reality?
A.
RADR
proceeds.
Q.
7639,
what's this?
A.
Check
to me, RADR proceeds.
Q.
7625,
what's that?
A.
Check
to my
son,
RADR
proceeds.
Q.
There
were
other
checks like that, too; correct?
A.
Yes.
Q.
Why did you involve your wife and your children like this?
A.
I shouldn't
have. It was the wrong thing to do. It was a
– I thought it was a way to get the
RADR
proceeds back to us.. . .
Q.
Mr. Fastow,
you
involved [your wife] in one of
your schemes, right?
A.
Yes.
Q.
And
because
of your efforts, you caused her to go to jail. Is that right?
A.
Yes. Cross-examination by
Petrocelli:
Q.
You
want
the jury to believe that Mr. Skilling is consumed by greed as you are, right?
A.
I didn't say that, sir. You did.
Q.
I asked you.
It's a question. Answer it.
A.
My answer
to
that
question
is
I spent a lot of time up here already saying that I stole from Enron. I did steal
from
Enron. We stole from Enron. That was why it was difficult
for
me when you posed your question to
answer
directly.
Q.
Who's the "we"?
A.
Myself
and
other
members of
senior management of Enron.
Q.
Did they steal that 120 million?
A.
No.
They
stole
in
different ways related to this 120 million.
Q.
Now, you say, "They stole in
different ways," other members of senior management. What you're saying is that
other members of senior management committed
fraud to make their stock go up, then they would sell their stock
and
get
away
with the booty that way. That's what
you're suggesting, right?
A.
Are
you asking me?
Q.
I'm asking you.
A.
What
I'm
saying
is when you misrepresent the nature of your company,
when
you artificially inflate
earnings, when you improperly hide losses, when you do things like this to cause your stock price to go up so you can sell your stock to cause yourself to make
earning targets, that
otherwise you'd be
unable to make so you
get
high salaries and bonuses, that is stealing.
Q.
Okay. Re-direct examination by
Hueston:
Q.
You've
been
asked about stealing from
the
house. Does the house include the investors
at Enron?
A.
Yes, sir.
Q.
How does the manipulation of
Enron's financials
equate to stealing from that house?
A.
Well –
MR.
RAMSEY: Objection.
That's asking
him to speculate on a theory
of law, rather than asking him facts, and I
object to that.
MR.
HUESTON: Your Honor, he has not been given a chance
to explain in cross-examination about that full gamut of stealing, and I think he deserves
an opportunity to do so now.
THE
COURT:
Overruled.
BY MR. HUESTON:
Q.
You
can
answer.
A.
. . . when management misrepresents the
nature of
the
company,
inflates the earnings,
minimizes
the losses, does various
things to mislead investors into giving that company their
money, and then, in turn, takes that
money
in the form of bonuses, salaries and cashing in stock options at higher
levels, all at higher
levels than
they
might otherwise
be able to, I believe
I did
that, and that's
stealing.
And
I believe that
senior management of
Enron contributed to that misrepresentation
and those actions. |