Trial of ex-Enron executives delayed two weeks after Causey plea agreement Kate Heneroty at 8:51 AM ET
[JURIST] The trial of former Enron [JURIST news archive] executives Kenneth Lay [BBC profile; defense website] and Jeffrey Skilling [BBC profile] has been delayed two weeks until January 30, following a decision by former co-defendant Richard Causey [profile] to testify against his former bosses [JURIST report] under a plea agreement [PDF] made public Wednesday. Causey, Enron's former Chief Accounting Officer, became the sixteenth person connected to Enron to plead guilty, agreeing to cooperate with prosecutors in exchange for a reduced sentence on a single charge of securities fraud. Prior to his plea agreement, Causey had planned to present a unified defense with Lay and Skiling. Causey's testimony is expected to be extremely damaging to the other two because his intricate knowledge of Enron's financial dealings allows prosecutors to present the jury with a less complex case. Causey's close working relationship with Lay and Skilling also allows makes it difficult for them to deny knowledge of many fraudulent transactions or blame subordinates for the fraud. The Houston Chronicle has more.
Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible, ad-free format.