Former Enron chief denies fraud charges

Former Enron chairman and founder Mr Kenneth Lay has pleaded not guilty to criminal charges relating to the collapse of the energy…

Former Enron chairman and founder Mr Kenneth Lay has pleaded not guilty to criminal charges relating to the collapse of the energy giant.

He is accused of taking part in a "top-echelon" conspiracy to dupe investors about the company's finances in 2001.

Mr Lay, who was brought to a federal courthouse in handcuffs after surrendering to the FBI yesterday, denied the charges before US Magistrate Judge Mary Milloy. He was later released on $500,000 bail.

He was indicted by a federal grand jury on 11 criminal counts, including securities, wire and bank fraud and making false statements to banks.

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The former friend and generous campaign donor to President George W Bush - who called him "Kenny Boy" - appeared relaxed and confident throughout the day, despite facing up to 175 years in prison and $5.75 million in fines if convicted on all counts.

At a press conference after his court appearance, with wife Linda seated behind him, a resolute Mr Lay said he was greatly saddened by the demise of the company he helped create in a 1985 merger and led for most of its history.

"The Enron collapse was an enormous tragedy. I continue to grieve, as does my family, over the loss of the company and my failure to be able to save it," he said. "But failure does not equate to a crime."

Mr Lay continued to blame former Enron chief financial officer Mr Andrew Fastow for the company's demise.