Hueston to Question Enron’s Lay in 2nd Trial

While jurors deliberate the outcome of the fraud and conspiracy trial of Enron Corp. founder Kenneth L. Lay and former Chief Executive Jeffrey K. Skilling, Lay is on trial again without a jury on charges stemming from his personal banking.

The 64-year-old former chairman spent six days on the witness stand during the conspiracy trial, often combative and contentious with federal prosecutor John C. Hueston, who secured the indictment against Lay nearly two years ago.

Lay is expected to square off with Hueston again today in the ongoing bench trial before U.S. District Judge Sim Lake, who presided over the conspiracy case. The bench trial began Thursday, the conspiracy jury’s first full day of deliberations, which also will continue today.

The first faceoff between Lay and Hueston featured plenty of fireworks. But Lake has repeatedly told lawyers in the banking case to keep a brisk pace.

In that case, Lay faces one count of bank fraud and three counts of making false statements to banks. Each count carries a maximum penalty of 30 years in prison. The government contends that beginning in 1999, Lay obtained $75 million in loans from three banks and then reneged on documented agreements with the lenders that he wouldn’t use the money to carry or buy margin stock.

The trial could wrap up as early as Tuesday.