Ex-Enron CFO: Lay, Skilling knew about fraudulent partnerships Alexandria Samuel at 3:21 PM ET
[JURIST] Former Enron [JURIST news archive] Chief Financial Officer Andrew Fastow [JURIST news archive] took the stand for the prosecution against his former bosses Enron founder Kenneth Lay [Houston Chronicle profile] and former CEO Jeff Skilling [Houston Chronicle profile] Tuesday. Fastow testified that both Lay and Skilling were aware of the creation of two partnerships in 1999 designed to keep the failing firm's liabilities off the books. Fastow said that Skilling encouraged him to create as much revenue from the partnerships as possible, earnings that were later swapped with the parent company to conceal financial losses.
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