Direct examination:
Q.
What do you understand LJM was being asked to do here?
A.
Enron had tried to sell some of the lowest credit
quality
paper that the ENA CLO was offering as well as the equity. They couldn't find any buyers and
so Enron desired for LJM to buy that debt and that equity so that the transaction could take place.
Q.
Was LJM willing to do this?
A.
Yes.
Q.
And did you have discussions with Mr. Fastow
as to why LJM was willing to take this lowest
quality paper and equity?
A.
Yes, I did.
Q.
What
did he say?
A.
He told me that LJM would not lose money on its investment.
Q.
Okay.
Did you have and others
have a term that you used
to describe this lowest quality paper and equity that LJM was going to be taking
off Enron’s
hands?
A.
We referred
to it
as nuclear waste.
Q.
Why did you use that term? A. That's illustrative of how bad it was.... Q. You did – just following up on your last answer. You're saying that you thought you were an accomplice or you assisted somebody to break the law, correct?
A.
That's correct.
Q.
And that was-and were you concerned
about getting caught?
A.
Not particularly.
Q.
Well, why not? You don't want to go to jail.
A.
The conduct
was fairly open and notorious, I would say. It was no great secret what we were doing....
Q.
Okay. You-"Please rate your manager using this scale. Honest." You gave a
one to honest. That's the highest score. "Always." Isn't that-is that inconsistent with being in a criminal conspiracy?
A.
I believe
Mr. Fastow was honest ·with me on things we discussed. Cross examination:
Q.
Who told you there was a document?
A.
Mr. Fastow.
Q.
And did he-did he tell you anything
about how the document came
into existence?
A.
He told me that he had sat down with Mr. Causey and they had laid out in this global
agreement
what
all
of
the side deals
were
and
that
was-that was what it was.
Q.
Is
that just a one-on-one conversation that you and he had?
A.
I have had that conversation with him, yes.
·
Q.
One-on-one, right?
A.
Yes.
Q.
And did he tell you that-well, first of all, did he
describe
the document
to you?
A.
Other than it being written down. That was all I understood, the form of the document.
Q.
You don't know how many people have copies, do you?
A.
My understanding was that only Mr. Fastow and Mr. Causey had copies.
Q.
And who told you that?
A.
Mr. Fastow.
Q.
What did he say in that regard?
A.
That he and Mr. Causey had copies.
Q.
What else did he say?
A.
That's all I recall him saying about it.
Q.
He told you Rick Causey had a copy?
A.
Yes.
Q.
All right. One final thing, Mr. Loehr. Do you recall when the FBI first made personal contact
with you?
A.
Yes, I do.
Q.
What do you remember
telling them when they made contact?
A.
I remember
asking them what took them so long to find me.
MR. HUESTON:
Thank you. No more questions. |