February 19, 2006

Enron trial turns on truth, intent

As his defense attorney sees it, Jeffrey Skilling was completely sincere when he told investors in the months before the Enron Corp. bankruptcy that its broadband business looked great. The ex-Enron boss meant every word when he said the troubled unit\'s financial results were on target, and that it was merely moving jobs around rather than cutting them by the hundreds to stem mounting losses. The landmark trial of Skilling, Enron\'s former chief executive, and Kenneth Lay, its former chairman, has zeroed in on what the men were thinking when they uttered such upbeat remarks as disaster loomed five years ago. Most white-collar cases require prosecutors to show the defendants\' state of mind, which can be \"very difficult\" in complex matters subject to varying interpretations, said Peter Henning of Wayne State University\'s law school. \"How far do you want to push the criminal law? You really are arguing about shades of gray.\"

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