Direct examination:

 

            Q.        Did you say something to Mr. Kaminski about "We don't need any more cops in RAC"?

            A.         Well, what the discussion was as-I was congratulating Vince, because it's really--quite honestly, it's a little unusual for the commercial guys to be so supportive of someone who is a PhD in mathematics. It's just­ sometimes that doesn't happen. And so, he was-I was telling Vince, "This is great. You know, you are really in demand within the company. They want you in North America." And I was, basically, saying "Congratulations that you have such support within the company."

And then we talked some about RAC. And he said, "Well, will we be able to support RAC?" I said, "Yes, because RAC could continue to draw on their services as necessary." He said, "Is that a problem?" And I said-I said, "I don't think so because we have plenty of cops in the RAC group,"because the RAC group, at that point, was a very big organization  and  had -including analysts  and  associates  had a couple  hundred  of people in that organization. So, I told Vince he didn't have to worry, "We have plenty of cops in-house to protect the company."

            Q.    Were you in any way, shape, or form demoting Mr. Kaminski?

            A.     No. Vince was pleased. I think he was happy to move.

 

Cross-examination by Sean Berkowitz:

 

            Q.              Sir, 24680 is a check [to Ms. Bender] dated March 3 of 1998, Number 276; correct?

            A.              Yes, that's correct.

            Q.              The next one is dated [sic] 277 for $10,000 to Ms. Bender; correct?

            A.              That's correct.

            Q.             The next one in sequence, March 2nd, 1998, $10,000 to Ms. Bender?

            A.              That's correct.

            Q.             The next one, 279April 10th of 1998, $55,000 to the IRS?

            A.              That's correct.

            Q.              Sir, is it your testimony that you did not backdate that Check Number 277?

            A.              I don't recall.

            Q.              Can you explain to the jury, sir, why it is that Check 277 has a date of December 28, 1997?

            A.              No, I can't, Mr. Berkowitz. And if it’s – if you believe that this is somehow a violation of a tax laws. I'd be happy to sit down and talk to you about it, because it's not...

            Q.              And, sir, is it your testimony that your relationship-that the personal nature of your relationship with Ms. Bender ended in 1998?

            A.              I'm sorry.        

            Q.              Is it your testimony that the personal nature of your relationship with Ms. Bender ended in 1998?

            A.              Oh, no. We stayed friends. We're friends. I haven’t talked to her in awhile, but we may have occasionally dated some subsequent to that.

            Q.             But your romantic relationship with her ended in 1997 or 1998?

            A.             We stayed friends after that.

            Q.             That's not my question.

            A.                         You'd have to define – what – what does this have to do with fraud at Enron Corporation, just out of curiosity?

            Q.             Can you answer my question or not, Mr. Skilling?

            A.             We continued to have a relationship, yes....