Bad Day for Skilling

Skilling's boy, Richard Causey, has apparently flipped and will be testifying for the defense against Skilling and presumably Lay. This is really bad news for Skilling because it puts someone in the room testifying about meetings between Skilling and Fastow. Fastow is the real criminal in all of this Enron mess. Skilling, I think, was complicit in Fastow's dealings and for that he should go down. Causey's testimony will almost surely do that. According to the WSJ article and other books I've read on the subject, Causey is really a pretty good guy. Skilling, not so much.

I think Causey flipping might actually help Lay. I think Lay was pretty much a dupe, with his eye on politics more than on Enron. Skilling left Lay in a pretty horrible position when he abandoned ship right when the fall from grace started. The government's case pretty much depends on someone knowing that Lay knew about the financial condition of the company when Lay made remarks touting the company at a stockholder's meeting. I don't think Causey will provide that for the government. I'll think he'll provide just the, 'Lay was not in that meeting', sort of testimony.

UPDATE: Kurt Eichenwald writing for the NYT points to testimony that Causey may give based on a meeting between him, Lay and Skilling that could prove Lay knew of the financial shenanigans:

Corporate records and other documents establish that Mr. Causey engaged in frequent conversations with Mr. Lay and Mr. Skilling about accounting decisions at Enron, the former energy giant. Indeed, Mr. Causey was one of two participants in an Oct. 12, 2001, meeting with Mr. Lay that forms the basis for one charge against the former Enron chairman. With his legal liability established through a plea agreement, Mr. Causey could now be compelled to testify about his recollection of that meeting and other events.

Eichenwald wrote his own book on Enron, which I have yet to read.