Thursday, February 23, 2006

THE ENRON TRIAL: Unruffled, ex-exec says she followed company line

Houston Chronicle

Former Enron executive Paula Rieker was unflappable Wednesday as her ex-boss Ken Lay's lawyer unsuccessfully tried to unravel her contentions that she, Lay and many others followed the company line in misrepresenting Enron's financial health to outsiders.

Rieker, the former managing director of investor relations and secretary to the board of directors after September 2001, said she never told Lay specifically that he was engaging in wrongdoing. But she said she did unsuccessfully try to get him to correct some false statements.

She said there were times she blinded herself to what was going on at Enron.

"I fell into the role of being a good corporate citizen," she said.

The 51-year-old has pleaded guilty to insider trading and is cooperating with the government hoping for a lighter sentence. She is the fourth witness in this conspiracy and fraud case against Lay and former CEO Jeff Skilling .

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