"The Ebbers trial is a bellwether for Lay," said David Berg, a Houston trial lawyer who has watched both cases. "Both are huge financial frauds at the heart of the businesses, both involve billions of hidden losses ... and both men claim to have been removed from the day-to-day business."
Because the jury convicted Ebbers on all charges, they must have searched hard for evidence against him on each charge, highlighting the difficulty of getting jurors to believe the "What's a poor boy to do?" defense, he said.
Ebbers, who grew up without much in Mississippi, testified that he was never made aware that accountants were falsifying books at the company. The defense claims former Chief Financial Officer Scott Sullivan masterminded the fraud.
Lay, who was raised on a Missouri farm, has said much the same thing in his own defense, down to blaming his former CFO for much of the trouble at Enron.
Farm, schmarm. In Lay's case, a simple comparison of what he did privately (sold Enron stock) to what he said publicly ("buy Enron stock") should help clarify his involvement in the Enron frauds.
Whenever leaders prophesy, profound things happen. When their prophesies turn out to be calculated lies, the fortunes and lives of their followers are lost.
Because society reacts to what leaders say, whenever they promote imaginary resources, false prospects, or non-existent threats (think WMDs), the proper response is to relieve them of their positions and send them to jail. Ebbers will likely spend the rest of his life in prison, and so should Ken Lay who squirreled away enough fraudulently-gained investments to guarantee himself an annual income of $912,000 for life.
Remember: the proposed Social Security private accounts will be invested in the enterprises of the Ebberses and Lays of the world. Doesn't that make you want to bet your life savings on their integrity?
