Enron's defence label Fastow a liar

A defence lawyer this week called ex-Enron chief financial officer Andrew Fastow a skilful liar who exaggerated the financial peril Enron faced in 2001.

Michael Ramsey, representing Enron founder Kenneth Lay, also played tapes for jurors in which his client, just after taking the reins as Enron chief executive in August 2001, flatly told employees that some of the company's overseas assets were "generating a very, very low return on investment".

Ramsey aggressively challenged the credibility of Fastow, who testified last week that Lay was well aware of the dire straits faced by the company, even as he talked it up to employees and the public.

Fastow was undergoing a fourth and final day of questioning on Monday - and his third of cross-examination - in the trial of Lay and former Enron chief executive Jeffrey Skilling, who face fraud, conspiracy and other charges in the spectacular collapse of the energy trader.

Fastow has admitted stealing millions of dollars from Enron for himself, partners and a family foundation through a string of schemes he hid from his bosses.

He faces 10 years in prison.

- REUTERS