Lawyers for Enron Corp. founder Kenneth Lay and ex-CEO Jeffrey Skilling went right to the heart of their defense strategy on Monday, telling the jury ex-CFO Andrew Fastow was a devious accountant and skilled liar who duped his bosses, stole millions and pushed the company toward financial ruin. Fastow, in his fourth day of testimony in the seven-week-old trial, has admitted to stealing and lying from the company, but he testified last week Lay and Skilling also deceived shareholders and analysts about Enron’s true financial state.

“You were very proficient at looking [Lay] right straight in the face and telling you were loyal, and he could count on you, but you knew in your heart you were stealing from the house,” Lay lawyer Mike Ramsey said to Fastow. “You were successful in your lying and your deceit from 1997 all the way up to 2001, weren’t you sir?”

“With regard to everything, I had all of those people fooled, yes, sir,” Fastow replied. “With regard to certain of the things I did, I got away with it for a very long time.”

Ramsey tried to show jurors Lay and Skilling had no knowledge of Fastow’s illegal activities in connection with Enron’s special purpose entities (SPEs), which were partially blamed for the company’s bankruptcy. The SPEs, which were approved by Enron’s board, were set up and run by Fastow. He is alleged to have stolen at least $25 million from the company, in the form of partnership fees and profits. Fastow pleaded guilty to fraud and was sentenced to 10 years in prison

Ramsey, who took over cross-examination at midmorning, attacked Fastow’s testimony about an Aug. 15, 2001 meeting Fastow had with Lay after Skilling had resigned as CEO.

“You were looking him right straight in the face, telling him you were loyal, and he could count on you, and you were stealing from the house?” Ramsey asked. “I lied to Mr. Lay,” Fastow responded.

Ramsey, who called some of Fastow’s earlier testimony “cockamamie,” accused him of exaggerating his testimony, calling one statement about an Enron power plant in India as “an absurdity on its face.” Ramsey asked Fastow whether he would lie to help prosecutors obtain a conviction.

“Would you exaggerate to help your position with lawyers on the [Enron] task force?” Ramsey asked.

“No sir, I believe exaggeration would not be telling the truth. I’m trying to be truthful,” Fastow said. “My job is to tell the truth here, not to exaggerate it.”

Ramsey, who had several heated exchanges with Fastow concerning his truthfulness, at one point quizzed, “When was the magic day that you quit lying?” Fastow said he stopped lying after signing his plea agreement. “I’ve told the truth ever since,” he said.

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