The Enron Trial: Testimony of Christopher Loehr (former analyst for Enron)


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.


Redirect examination:

            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.

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