Word: watkinses
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Shortly after she discovered the accounting errors, CEO Jeff Skilling resigned. "He's a smart man," Watkins said. "The stuff I stumbled across - he knows it," she recalled thinking. "He knows it's bad." She described writing her infamous memo warning that the company was in danger and discussing it...
One line in the memo quotes an employee as saying, "I wish we would get caught. We're such a crooked company." "I remember he winced when reading it," Watkins said. During her testimony, Lay's face turned dark red.
Lay was skeptical that the fraud she pointed out to him could be problematic, she testified. And after their meeting, Lay continued to tell investors, analysts and employees that everything was fine at Enron. "It was just assumed that I was wrong," Watkins said. "It was a blatant lie."
Kicking off his cross-examination, Lay's lawyer, Chip Lewis, tossed a copy of Watkins book, Power Failure, onto the witness stand. "A housewarming gift," he said. She told him she already had a copy.
Lewis asked if she had committed any crimes while at Enron. "I'm not an expert at that," Watkins said. He pointed out that she sold some of her Enron stock after meeting with Lay - yet the government didn't charge her with insider trading. "I wish I hadn't...