As the jury began its second day of deliberations in the case against Enron Corp. founder Kenneth Lay and ex-CEO Jeffrey Skilling, Lay faced a new day and a new trial on Thursday in a separate fraud and conspiracy case involving his personal banking.

Prosecutors allege that beginning in 1999, Lay obtained $75 million in loans from Bank of America Corp., Chase Bank of Texas and Compass Bank. According to the original indictment, Lay allegedly promised the banks that the loans would not be used to purchase stock.

“As a result of these false representations, the banks extended far greater loans to Lay than they otherwise would,” the indictment reads. The indictment alleges that “in spite of his promises, Lay repeatedly used the lines of credit to buy the stock. The lines of credit were collateralized mainly by artificially inflated shares of Enron stock and were repaid with the same.” Lay was charged with one count of bank fraud and three for allegedly making false statements. Each charge carries a maximum 30-year prison sentence.

“This is a straightforward trial about lying to the banks,” said government prosecutor Robb Adkins in his short opening remarks. “Evidence will show Mr. Lay repeatedly and falsely executed forms relied on by banks and required by banks.”

Although Lay paid back the loans involved in the alleged scheme, that is not considered a defense for fraud. Lay secured the bank loans by using Enron stock, and he signed documents agreeing to the rules but “repeatedly” used the loans to buy stock that he had promised he would not purchase from the credit lines, Adkins said.

Presiding U.S. District Judge Sim Lake, who also is overseeing the case against Lay and Skilling, is hearing the case and will render a verdict without a jury. He told the lawyers he expects the case to only last a few days. Lake plans to issue his verdict after the jury deliberating the Enron case has issued its verdict.

In other news, online futures exchange TradeSports.com is leaning toward convictions for both Lay and Skilling in their Enron trial. According to the site, a contract that pays $10 if Skilling is convicted of at least 16 of the 28 counts against him was selling for $6.90 on Wednesday. That puts the odds of conviction at 69%. Contracts to pay if Lay is convicted of at least four of the six charges against him were selling for $6.64, which suggests a 66% chance of conviction.

For those interested in actually seeing the jury deliver its verdict in the case, the Houston Chronicle reported that the court will issue special verdict passes on Monday. Passes will be handed out in front of the downtown courthouse in Houston beginning at 7 a.m. CST on a first-come, first-served basis. When the announcement is made that jurors have made their decision, only those people with a pass will be admitted to the courthouse. The jurors are deliberating between 8 a.m. and 4 p.m. CST Monday through Thursday.

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